Shoreline Energy Corp. has acquired two non-operated working interest asset packages located in Weld County Colorado in the Wattenberg field. The asset packages are in the heart of the world class Niobrara and Codell oil projects, being developed with the use of proven horizontal wells and multiple stage hydraulic fracturing technology. These latest acquisitions are situated in close proximity and are a perfect complement to the royalty and working interest acquisitions the Company announced in the fourth quarter of 2012. Total aggregate purchase price for these acquisitions is US$22.5 million, subject to final closing adjustments, with effective dates of November 1, 2012 and February 1, 2013 respectively.

These new acquisitions bring to Shoreline an average pre-pooled working interest of 14% in approximately 4,500 acres of land. Drilling operations are underway on the acreage and to date 8 new horizontal oil wells are on production. Based on current development plans published by the key operators in the area, there are between 100 and 200 possible horizontal drilling locations on the acquired acreage. Current operating income from the existing vertical oil and gas wells on the lands is approximately $250,000 per month, plus a forecast initial $200,000 to $250,000 per month attributable to the initial 8 recently drilled horizontal producers on Company lands. The Company has engaged the services of a well-respected reserve evaluator to provide an NI 51-101 compliant independent evaluation of the assets to be completed in the second quarter of 2013.

Tags: Shoreline Energy Corporation