Hinto Energy Inc., Denver, (OTCBB: HENI) has completed the acquisition of certain Utah Unitah Basin oil and gas wells and related assets owned by Pacific Energy and Mining Co., Reno, Nev., (Pink Sheets: PEMC) for an undisclosed combination of cash and debt.
The assets are in the Greater Cisco area in Grand County and feature 4,783 gross acres in the Cisco Springs fields with a net revenue interest averaging approximately 80%. The property includes 27 wells that need to be produced or re-worked. Some wells are currently scheduled for connection to a gas pipeline. There are several drilling locations that are prospects for offset wells.
The assets are currently producing between five and 15 barrels of oil per day. When gas wells are connected to pipeline and brought on-line, additional production of approximately 200,000 cubic feet of gas per day is expected.
Hinto chief financial officer George Harris says, "We are pleased to add the company's second oil and gas property in the Uintah Basin area. We are currently connecting gas wells to a pipeline and expect to report initial oil and gas revenues this quarter. The company expects to finalize its field redevelopment plan in June and begin implementation in the third quarter of 2012."
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