News: Ardent Resources acquiring oil and gas production assets in North Dakota

Ardent Resources (ASX:AWO) has executed an agreement to acquire unlisted Australian public company Shale Energy Limited, which has oil and gas production assets in North Dakota.

Shale’s three tenements are located in the highly prospective Williston Basin and currently produce 25 barrels of oil per day from three wells targeting the Bakken and Three Forks shale plays.

This could increase to over 250bpd by mid-2016 based on the current portfolio with no new acquisitions.

Operators over the three tenements include EOG Resources (NYSE:EOG), Sinclair Oil & Gas and SM Energy (NYSE:SM).

Permitting and applications have been made for at least 28 additional wells.

Ardent will acquire Shale for an initial 208 million shares. It will issue a further 37 million shares if more than 3,000 barrels net to Ardent is produced over a period of 30 consecutive days within two years from the date of completion.

Another 37 million shares will be issued if production exceeds 6,000 barrels net to Ardent over a period of 30 consecutive days within two years from the date of completion.

The company also plans to raise between $2.5 million and $3.5 million through an issue of between 12.5 million and 17.5 million shares priced at $0.20 each.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.