Pure Cycle will receive a bonus payment of about $1.26m and will receive a royalty of 20% on the gross sales proceeds (less certain taxes) from oil and gas developed from the property.
Anadarko is currently conducting a seismic survey of about 150 square miles surrounding and including the Sky Ranch property to further evaluate the production potential of the Niobrara oil and gas formation.
Pure Cycle president and CEO Mark Harding said with this lease, the company is tapping into the rapidly evolving development of the Niobrara oil and gas formation in Colorado.
"Obtaining a lease for the mineral rights at the Sky Ranch property was highly competitive among a number of national and international oil and gas operators," Harding said.
