Arete Industries has entered into an agreement to buy oil and gas properties in the US states of Wyoming, Colorado, Kansas and Montana.

The $10m purchase includes 91 operating wells, approximately 37,000 gross acres that includes about 21,000 net acres under lease, and approximately 250 PUDs.

The company said that the property offers a large opportunity for future development and it plans to have a short-term (one year) drilling plan out by the end of May 2011.

The agreement had several items to be finalized including the requirement of a cash down payment, the review of the Ryder Scott reserve study, and short-term financing.

Arete Industries is the operator of a gas gathering system and oil and gas properties in the Rocky Mountain region of the US.