The independent exploration and production company sold its interests in the Sand Wash Basin from the acreage located in Carbon County, Wyoming, and Moffatt County and Routt County, Colorado, in an area known as the Fly Creek Prospect.
The basin is a prospective for the Niobrara shale oil and other secondary target formations known to contain oil and natural gas.
Emerald Oil will retain about 14,000 net mineral acres in Focus Ranch Unit in Routt County, Colorado; hold 45% interest in 6in diameter natural gas gathering pipeline extending from Fly Creek coal bed methane production plants in Moffat County to a Questar pipeline connection in Carbon County, Wyoming.
The firm has also agreed to assign its interests in the Fly Creek coal bed methane operation and three Niobrara oil wells located on the 30,902 net mineral acres in the Sand Wash Basin to the holder of remaining interest in the assets.
Emerald Oil will pay $500,000 as abandonment costs to the remaining interest holder.
