The property, referred to as the Musselshell, is comprised of 7,000 acres that cover the Heath and Amsden formations, which are defined by seismic data.
The company has completed its due diligence and is scheduled to close this agreement within a month.
The company believes that the western half of the property has the potential to support 16 horizontal drill sites with 2,000ft horizontal legs in the Heath formation.
Seismic data on the eastern half of the property also shows exploration potential in the Amsden formation.
The Heath-Tyler petroleum system, located in central Montana, has produced about 100 million bbl of oil from over 25 fields.
Recently, the State of Montana issued drilling permits to several operators to explore for oil in fractured Mississippian Heath shale in the Central Montana trough.
The areas of interest for horizontal drilling are in Garfield, Petroleum, Fergus, Musselshell, and Rosebud counties.
