Petroshare Corp. (PRHR) Prepared to Capitalize on Presence in Niobrara Formation as Oil Prices Demonstrate Upward Momentum

Petroshare Corp. (OTCQB: PRHR) is a domestic oil and natural gas exploration and development company targeting capital deployment opportunities in established unconventional resource plays. The company’s initial focus is on various opportunities targeting the unconventional Niobrara formation in the Rocky Mountain region. Petroshare currently possesses multiple mining resources in the Niobrara formation, including 1,280 gross acres on its Todd Creek Farms project in Northeast Colorado and 7,700 gross acres on its Buck Peak prospect in Northwest Colorado. The company has already drilled and completed two producing wells in the Buck Peak prospect, and it expects to initiate development activity as both an operator and a non-operator on the Todd Creek Farms project later this year.

Last week, Petroshare took a major step toward expanding its portfolio of properties when it announced entry into an agreement to acquire producing vertical wells and associated leases totaling roughly 4,850 gross and 2,200 net acres in Adams County, Colorado, a significant portion of which is located within the Todd Creek Farms project area. If completed, this acquisition would provide an immediate boost to Petroshare’s production figures, adding approximately 125 BOEPD from existing wells, as well as opening the door for potential drilling of 36 new horizontal wells. Crucially, the entirety of the acreage associated with this acquisition is currently held by production, meaning that Petroshare would have the right to operate the property beyond the initial lease term without becoming subject to significant spikes in property prices.

“We are excited to have the opportunity to expand our asset base and development drilling inventory in this marquee resource play,” Stephen J. Foley, chief executive officer of Petroshare, stated in a news release. “The fact that the leases associated with this acquisition are held by production providing us flexibility as to when we choose to further develop the acreage, is important in this commodity price environment.”

The Niobrara Shale formation, which extends from Canada to New Mexico, has been producing resources for more than a century, but it’s considered relatively young because much of the oil and gas concentration has been inaccessible without the implementation of horizontal drilling techniques and hydraulic fracturing. In total, the formation is estimated to hold up to seven billion barrels of tight oil and up to 500 billion barrels of currently unrecoverable oil. Much like the Bakken formation, the Niobrara has attracted significant capital investments from major players in the oil and gas space, including Noble Energy (NYSE: NBL) and Anadarko (NYSE: APC), further demonstrating the economic potential of Petroshare’s interests in the region.

Petroshare’s growing presence in the Niobrara formation comes as the global oil market shows signs of impending recovery. Oil prices fell from a peak of $115 per barrel in June 2014 to less than $35 by the end of February 2016, directly impacting Petroshare, which closed its initial public offering in November 2015. However, the forecast for oil moving forward is much more promising for the exploration company. Earlier this week, Reuters (http://dtn.fm/QqU9e) pointed toward falling U.S. crude inventories and a weakening U.S. dollar as signs of oil’s upward momentum. Domestic oil prices closed at their highest levels in seven months on Monday, June 6.

For more information, visit www.petrosharecorp.com

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