Elk Petroleum buys Wyoming gas assets for US$20M

Company News

by David Chau

Oil and gas company Elk Petroleum Ltd (ASX:ELK) has entered a contract to acquire mining company Freeport-McMoRan’s stake in the Madden Gas Field (one of the largest gas fields in Wyoming, USA).

Elk will also acquire the Lost Cabin Gas Plant, which receives the gas produced from the Madden Gas Field through an extensive gas gathering system.

The purchase price of these two assets is US$20 million, for which Elk will acquire a 14% non-operating working interest.

Elk says, based on production forecasts from an independent gas consulting firm, the Madden Gas Field should be producing gas beyond 2030 – and potentially even until 2040.

Elk Petroleum posted a net loss of $7.2 million at 30 June 2016.

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