Recovery Energy Announces Sale of a Portion of Its DJ Basin Acreage
DENVER, Nov. 15, 2012 (GLOBE NEWSWIRE) -- Recovery Energy, Inc. (Nasdaq:RECV),
an independent oil and gas exploration and production company with operations
and assets in the Denver-Julesburg (DJ) Basin, announced today that it has
entered into a definitive purchase and sale agreement with a private company
to grant a four-year lease for the deep rights on approximately 6,300 net
acres of undeveloped leasehold acreage in the DJ Basin. The agreement defines
"deep rights" as all formations below the base of the Cretaceous "J" sand,
above which Recovery Energy retains all rights. Gross proceeds to Recovery
Energy will be approximately $1.5 million. The company continues to own oil
and gas leasehold rights to approximately 140,000 gross acres, 125,000 net
acres, in the DJ Basin.
"We are pleased to announce further progress towards our strategic goal of
funding crude oil exploration and development through conventional and
horizontal drilling in multiple horizons in the basin," said A. Bradley
Gabbard, President and CFO of Recovery Energy. "This agreement is part of our
continuing effort to pursue various transactions with industry, to create
additional capital for the company while preserving what we consider to be our
most strategic assets."
The agreement is subject to customary closing terms, and is expected to close
within 30 days.
About Recovery Energy, Inc.
Recovery Energy, Inc. (RECV) is a Denver-based independent oil and gas
exploration and production company that operates in the Denver-Julesburg (DJ)
Basin where it holds approximately 140,000 gross, 125,000 net acres. Recovery
Energy's focus is to grow reserves and production through a combination of
acquisitions and conventional and unconventional drilling activity, targeting
the various oil-bearing formations that produce in the DJ Basin.
This press release may include "forward-looking statements" as defined by the
Securities and Exchange Commission (the "SEC"), including statements, without
limitation, regarding the Company's expectations, beliefs, intentions or
strategies regarding the future. Such forward-looking statements relate to,
among other things the Company's: (1) proposed exploration and drilling
operations, (2) expected production and revenue, and (3) estimates regarding
the reserve potential of its properties. These statements are qualified by
important factors that could cause the Company's actual results to differ
materially from those reflected by the forward-looking statements. Such
factors include but are not limited to: (1) the Company's ability to finance
its continued exploration and drilling operations, (2) positive confirmation
of the reserves, production and operating expenses associated with the
Company's properties; and (3) the general risks associated with oil and gas
exploration and development, including those risks and factors described from
time to time in the Company's reports and registration statements filed with
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The Recovery Energy, Inc. logois available at:
CONTACT: MDC GROUP
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