CENTENNIAL, CO--(Marketwired - September 26, 2016) - PetroShare Corp. (OTCQB: PRHR) ("PetroShare" or the "Company"), today announced the signing of a Binding Letter of Intent to acquire 305 net acres of leases adjacent to its Todd Creek Farms prospect area in Adams County, CO. The new leases potentially add up to 32 gross, standard and extended-length horizontal locations to its drilling inventory. The leases are in sections that offset two new producing Codell wells drilled and completed by an independent operator active in the area. The Company expects its strategic partner to acquire 50% of the leasehold interest and participate in future wells.
In addition, the Company announced that it has become the first oil and gas operating company to successfully receive project approval under the new Use by Special Review (USR) process as stipulated by Adams County, CO for oil and gas development. The approval is for 14 horizontal wells, ranging from 4,000 to 5,000 feet in producing lateral length, targeting the Codell and the A, B and C benches of the Niobrara formation on its Shook pad. The Company will be the operator of record for all wells drilled on the Shook pad and anticipates beginning pad site construction and surface facilities installation in the fourth quarter of 2016. The Shook pad is located within the Company's Todd Creek Farms prospect area, in the Southern Core area of the Wattenberg oil and gas field in the DJ Basin of northeastern Colorado.
"The USR approval in Adams County demonstrates the Company's ability to work with all interested stakeholders in the planning and development of our asset base in the Wattenberg Field," stated Stephen J. Foley, CEO of PetroShare. "Our new leasehold is part of the ongoing effort to expand our footprint through both asset acquisitions and organic leasing activities further enhancing the value of PetroShare shareholders."
The Company is also participating as a non-operator in several other development drilling projects including the Jacobucci pad, which consists of 14 mid-length laterals targeting the Codell and Niobrara B and C benches. The operator has recently completed drilling and casing operations on the eighth of 14 wells and is expected to begin completion activities during the first quarter of 2017. PetroShare has a working interest ranging from 10%-29% in the Jacobucci wells. Additionally, the Company has participated as a non-operating partner in the drilling and casing of a standard length Codell horizontal well to be completed in the near future in its Todd Creek Farms prospect area. Subject to funding, the Company plans to participate in all non-operated well proposals it may receive in the Todd Creek Farms prospect area.
About PetroShare Corp.
PetroShare Corp. is a domestic oil and natural gas exploration and development company that targets capital deployment opportunities in established unconventional resource plays. Its current focus is in the Niobrara/Codell formations and adjacent oil and gas producing zones in the Rocky Mountain region with specific targets in the Wattenberg field within the DJ Basin of northeast Colorado. For more information, visit www.PetroShareCorp.com
Caution Concerning Forward-Looking Statements
This press release contains certain forward-looking statements and information, including "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements and information expressed, as of the date of this news release, PetroShare's estimates, forecasts, projections, expectations or beliefs as to certain future events and results. These forward-looking statements include, among others, statements regarding the benefits that PetroShare expects from transactions and plans and objectives of management for future operations. Forward-looking statements and information are necessarily based on a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, technical, economic and competitive uncertainties, risks and contingencies, and there can be no assurance that such statements and information will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements and information.
Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements and information include, but are not limited to, risks related to receipt of working capital, the level of success in exploration, development and production activities, possible defects in title to properties, fluctuations in the market price of crude oil and natural gas, industry risks, possible federal and/or state initiatives related to regulation of hydraulic fracturing, risks related to permitting and the projected timeframes to receive the necessary permits, environmental risks and hazards, uncertainty as to calculation of crude oil and natural gas resources and reserves and other risks described in the Company's annual report on Form 10-K for the year ended December 31, 2015 and other filings with the Securities and Exchange Commission. Readers should not place undue reliance on forward-looking statements or information included herein, which speak only as of the date hereof. PetroShare undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements and information made in this news release are qualified by this cautionary statement.