Emerald Oil agrees to sell sand wash basin leases for about $10M cash

Emerald Oil announced that it executed an agreement to sell its interests in approximately 30,902 net mineral acres in the Sand Wash Basin to a private oil and gas company for approximately $10M cash at $325 per acre, subject to customary adjustments. Closing will occur during Q1, contingent on due diligence and other conditions precedent in the sales agreement. In a related transaction, the company has agreed to assign its interests in its Fly Creek coal bed methane operation and three Niobrara oil wells drilled in 2011 to the remaining working interest holder of the assets and to pay $500,000 for Emerald's share of abandonment costs. The assets subject to this transaction are located on the 30,902 acres being sold by Emerald.