The assests covers approximately 10,000 acres which includes the leases of the Bakken-Three Forks oil play.
The company said that the buyer will be purchasing 90% of our interest or approximately 9,000 net acres at a price of $1,500 per acre or $13.5m from which Hallador will retain a 10% working interest and an approximate 3% average overriding royalty interest in the play.
This transaction is subject to final approval by both parties.
The purchase and sale agreement is expected to be done by the next two weeks and the closing to occur on or before 29 July 2011.
Hallador CEO Victor Stabio said we are very excited about this sale as the Bakken-Three Forks play is one of the most active oil plays in the US and oil and gas operations are being carried at Denver office holding a 45% interest in Savoy Energy, a Michigan oil and gas operator.
