HOUSTON, October 6, 2010 – Ursa Resources Group LLC (“Ursa”), an oil and gas exploration and production company focused on the Bakken and Three Forks formations of the Williston Basin, announces that it has entered into an agreement with an undisclosed buyer to develop approximately 10,500 net acres (5,240 net to Ursa) in a proven part of the Bakken formation in McKenzie County, North Dakota and Richland County, Montana. With this agreement Ursa’s net leasehold in the Williston Basin now surpass 100,000 net acres, almost all of which is located in Williams, McKenzie, and Billings Counties, North Dakota and Richland and Roosevelt Counties, Montana.
Under the terms of the agreement, Ursa will earn an interest in the acreage by drilling and completing two earning wells, one in Montana and the other in North Dakota. The Company expects both earning wells to be drilled in 2011.
The Company has acquired acreage in the most prospective parts of the basin and has recently spud its first operated well in McKenzie County, North Dakota. This represents the start of a continuous, multi-rig development program.
Ursa is funded by Denham Capital, a leading energy-focused global private equity firm.
“Our significant acreage position gives us a considerable competitive advantage,” said Matthew Steele, President of Ursa Resources Group LLC. “We believe the Bakken and Three Forks represent the premier oil resource plays in the United States. Our acquisition of over 100,000 net acres and controlling interest in over 90 drilling units is a real testament to the skill and quality of our team. We are encouraged by the results of offset operators in and around our core development areas and are excited to begin development of these resources.”
The Bakken formation is the largest oil accumulation in the lower 48 states. It is a world class source rock occupying approximately 200,000 square miles of the Williston Basin, covering parts of Montana, North Dakota, and Saskatchewan, Canada. Significant producible reserves of oil have already been discovered within this area. A U.S. Geological Survey report found that North Dakota and Montana have an estimated 3.0 to 4.3 billion barrels of undiscovered, technically recoverable oil in the Bakken Formation.
About Ursa Resources Group LLC
Ursa Resources Group LLC is a privately held company focused on the leasing, drilling and development of the Bakken/Three Forks formations in the Williston Basin. With financial backing from Denham Capital, a leading energy-focused global private equity firm, the company has over 100,000 net acres currently under lease in Williams, McKenzie, and Billings Counties, North Dakota, and Richland and Roosevelt Counties, Montana.
About Denham Capital
Denham Capital is a leading global private equity firm with offices in Boston, Houston, London, São Paolo, Short Hills, NJ and Singapore. With approximately $4.3 billion of invested and committed capital, Denham makes direct investments in all segments of the energy and commodities value chain including oil and gas, mining and metals, power and renewable investments and energy-related infrastructure and services. The firm invests globally, having made investments in the US, Canada, South America, Europe, Russia/FSU, Asia and Australia, and across all parts of the capital structure and all stages of the corporate and asset lifecycle, from development projects to mature, operating businesses. Denham typically targets investments between $50 million and $300 million. For more information about Denham Capital, visit www.denhamcapital.com. Denham Capital does not provide investment advisory services to the public.
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