New Western Energy Corp. has signed an LOI to acquire all of the Osage County oil and gas assets from a long-time private independent producer in the area. The assets, once part of the Chaparral Energy holdings, consist of 10 contiguous quarter sections totaling 1600 acres. The main formation of interest is the Bartlesville Sand that is located in two structural highs with the acreage.
The Buzzard Sand, Skinner Sand, and Mississippi Lime are also present within the acreage. There are 20 producing wells of interest and one disposal well. The acreage has produced both Bartlesville oil and Mississippi gas. The project has 1000 acres of additional drilling space throughout the formations that are available to develop. The Company's preliminary plan is to study the structure for drilling locations that will complement the existing infrastructure.