Momentus, through its subsidiary Momentus Energy LLC, has signed a farm out agreement to earn a 50% working interest and operatorship of approximately 43,600 contiguous acres (the "Farmout Lands") and two existing wells in Roosevelt County in Northeastern Montana.
The 50% working interest and operatorship in the Farmout Lands will be earned by acquiring approximately 20 square miles of three dimensional seismic data and drilling a well horizontally within the Bakken Formation to a minimum lateral length of 4,900 feet. The 50% working interest and operatorship in one or both of the existing wells can be earned by conducting work-over operations on the wells.
The Farmout Lands are immediately north of the Elm Coulee field which is one of the largest producing Bakken oil fields. This oil field has been extending to the north and producing Bakken oil wells have reached the southern boundary of the Farmout Lands. Producing Bakken oil wells also exist to the east of the Farmout Lands.
The acquisition of the 20 square miles of three dimensional seismic data should be commenced in April 2014 and the first horizontal well is expected to be drilled in the 3(rd) quarter of 2014.
