Earthstone Energy has acquired a 26.5% working interest in five producing wells located at the Outlook Field in Sheridan County, Montana.
Lands associated with these wells cover over 2,500 acres and the wells were producing a total of approximately 90 gross barrels of oil per day when the company acquired the interest.
Earthstone said that because of water production, the wells are economically marginal, with the majority of purchased value lying in capital equipment and land.
Earthstone president Ray Singleton said that since having attained these wells, oil production has been increased 20%.
"If, as we expect, we can overcome water disposal issues, we believe we can increase oil production from these wells by another 50%," Singleton said.
Earthstone is an oil and gas exploration and production company with primary operations in the Williston Basin, the Denver-Julesburg Basin in Colorado, southern Texas and the Gulf Coast area.