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PRB Energy Acquires Producing Properties in Denver-Julesburg Basin

Adding to its stable of production plays, Denver-based PRB Energy Inc. said Tuesday that it is acquiring 13 natural gas wells and approximately 330,000 net acres in the Denver-Julesburg Basin of northeast Colorado and southwest Nebraska. Terms of the deal and the seller's identity were not disclosed.

The production and future development activities are in the Niobrara formation. Of the 13 wells, PRB said nine are currently producing approximately 500 Mcf/d, while three are awaiting hook-up and one is a water disposal well. In addition to the existing wells, PRB believes there are 140 potential drilling locations identified by 3D seismic on approximately 11,000 acres. The acquisition includes the license to 85 square miles of proprietary 3D seismic and 115 miles of proprietary 2D seismic.

"This acquisition is a consolidated acreage block on trend with proven and well-established Niobrara production," said PRB CEO Robert Wright. "In our opinion, there is also the potential for multiple pays from other regionally productive horizons as well as an opportunity to provide gathering and processing services to other operators in the area."

William F. Hayworth, PRB's president, added, "This acquisition is consistent with our diversification strategy of seeking more conventional reserves and meets our operational criteria. There are a number of companies in the area utilizing 3D seismic to identify drilling locations with a high level of success.

"This transaction is scheduled to close before Dec. 31, to be effective Dec. 1, and will have an immediate impact on production and reserves," Hayworth added

PRB is an oil and gas exploration and development company operating in the Rocky Mountain States. PRB also provides gas gathering, processing and compression services on properties it operates and for third party producers.

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