Shoreline Energy Corp. Provides Update On DJ Basin; Shrs Lost 6% Friday
Shoreline Energy Corp. (SEQ.TO) announced that it has acquired non-operating working interest in over 5,000 acres located in the prolific Wattenberg Field, in the Denver-Julesburg Basin for approximately $4.0 million in cash and stock. The acquisition closed on December 21, 2012, increasing Shoreline's acreage in the prolific DJ Basin by over 500 net acres.
Shoreline has acquired an average net revenue interest of 5.3% in a block of land within the same township where area operators including Anadarko Petroleum ( APC ) and Encana Corporation (ECA.TO) are drilling high impact horizontal wells targeting light oil within the Niobrara and the Codell at vertical depths of between 6800 and 7200 feet. Horizontal wells drilled in this area are completed using multiple stage hydraulic fracturing and have exhibited initial production rates of between 400 and 900 barrels oil equivalent per day. Existing production from historical vertical wells is estimated to be between 25 and 45 barrels oil equivalent per day to Shoreline's interest. Shoreline forecasts that horizontal wells on its newly acquired acreage will be drilled beginning in the late second quarter of 2013.
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