The Rocky Mountain region of the United States has an estimated 34 million barrels of original oil. After this oil is recovered by traditional means, approximately 23 billion barrels of oil will be left behind. Ameriwest Energy Corp. (OTCBB: AWEC) has positioned itself to capitalize on this oil, focusing on the production of underdeveloped oil resources in the Rocky Mountains to find a balance between low-risk recovery projects and exploration plays with significant upside potential.
The company today announced its formal intention to exercise its right to purchase oil and gas mineral leases adjoining its recent Geary Prospect acquisition. While Muddy Mineral Exploration, LLC was the highest bidder in the United States Department of the Interior’s Bureau of Land Management auction, the company extended an offer of first right of refusal to Ameriwest on an 80-percent Net Revenue Interest.
The purchase in question is for a 10-year Federal mineral lease located on roughly 240 acres of land located in the Area of Mutual Interest, identified as the Geary Prospect in the southwestern portion of the Powder River Basin in Wyoming. Ameriwest’s acceptance of Muddy Mineral’s offer will expand Ameriwest’s holding in the Geary Prospect to approximately 3,040 gross acres. The Powder River Basin has produced more than 300,000 barrels of oil from two oil wells.
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