Stetson Partners With Red Willow in North Dakota Bakken Prospect
Tuesday, October 28, 2008 8:04 AM
CALGARY, ALBERTA -- (Marketwire) -- 10/28/08 -- STETSON OIL & GAS LTD.
("Stetson") (TSX VENTURE: SSN) is pleased to announce that it has
signed letter agreements with Red Willow Great Plains, LLC ("Red
Willow") that provide for joint ownership and development of oil and
gas mineral rights on lands situated on the Fort Berthold Reservation
in North Dakota.
Red Willow Great Plains, LLC is a wholly owned business enterprise of
the Southern Ute Indian Tribe. Red Willow currently has net daily oil
and gas production of approximately 29,000 boepd. In addition to
substantial natural resources on their own reservation lands, the
Southern Ute Indian Tribe has significant commercial enterprises in
oil and gas off the Reservation, gas gathering and treating, real
estate, sand and gravel, alternative energy, and private equity
investments in a number of additional industries.
Stetson has agreed to assign 50% of its interest in oil and gas
mineral rights covering 12,696 acres of Allotment Lands to Red Willow.
In consideration, Red Willow will pay for 50% of the costs incurred in
relation to purchasing these lands, and will farm-in and cover the
first US$3,500,000 of Stetson's share of drilling, completing and
equipping costs on well(s) drilled on jointly owned lands. Stetson
will be the initial Operator of the Allotment Lands. Red Willow has
agreed to repay Stetson its share of the costs incurred in connection
with purchasing the Allotment Lands within 15 days of receipt of all
necessary approvals.
Stetson has also agreed to assign 60% of its interests in oil and gas
mineral rights on 8,185 acres of Tribal Lands to Red Willow. Red
Willow will pay for 60% of the costs incurred in relation to
purchasing these lands, and will also be required to share in the
obligations of the Tribal Lands, which includes, among other things,
the commitment to drill three wells during the initial term of the
leases. Stetson and Red Willow have received consent and approval for
the assignment of the Tribal Lands from the Tribal Business Council of
the Three Affiliated Tribes and have also made the requisite payment
for the leases to the Bureau of Indian Affairs. Red Willow will be the
initial Operator of the Tribal Lands.
Stetson and Red Willow intend to commence shortly planning for joint
drilling operations on the lands. The assignment of the interest in
the Allotment Lands and the Tribal Lands is subject to approval of the
TSX Venture Exchange.
Stetson is an emerging junior oil and gas company with exploration,
development, and production programs in the Provinces of Saskatchewan
and Alberta, Canada and North Dakota, U.S.A.
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