Exploration and production company PetroHunter Energy has entered into a non-binding letter of intent with Laramie Energy II, which outlines the basic terms of a purchase and sale agreement under which Laramie will acquire a 100% working interest in PetroHunter's Southern Piceance properties in the Garfield and Mesa counties of Colorado.
PetroHunter’s Southern Piceance properties covered by the proposed sale consist of approximately 1,059 net acres in the Garfield and Mesa counties, including 16 wells which have been drilled, but not completed or connected to a pipeline.
If the parties successfully reach an agreement and all closing conditions are met, the closing will occur by April 30, 2008. PetroHunter will retain its interests in the eight producing wells in the Garfield County, which are operated by EnCana Oil & Gas USA.
Charles Crowell, PetroHunter’s chairman and CEO, said: The sale of our Southern Piceance assets will provide PetroHunter with the ability to move forward one more step toward completing our existing wells, and conducting additional drilling and development in 2008, in Buckskin Mesa, our core area in the Piceance Basin.