The company purchased the acreage, which comprises 39,778 gross acres (29,854 net), for a total of $5.5m including $4.6m in cash and $0.9m in assumed liabilities.
The acreage acquired includes three producing wells, a number of drill ready locations and multiple exploitation and exploration prospects in two trends in the Santa Maria basin and four trends in the San Joaquin basin.
UGE said that the acquired lands are primarily prospective for Monterey and other analogous oil-prone shale plays.
UGE president and CEO Michael Kobler said this acquisition results in a five-fold increase in UGE’s land position in California and expands its presence in the historically productive Santa Maria and San Joaquin basins while retaining its focus on the Monterey and other oil-prone shales.
