T-Rex Oil, Inc. (TRXO) ("TRXO" or the "Company"), an independent energy company with a focus on the Rocky Mountain region announced on Friday March 27, 2015 it completed the previously announced acquisition contract of Western Interior Oil & Gas, Inc. ("WIOG"), a Wyoming corporation through an exchange for 83% of the issued and outstanding stock of WIOG for 7,470,000 restricted common shares of TRXO. The additional 17% of WIOG is being negotiated for 1,530,000 shares and will result in a total of 9,000,000 TRXO shares having been issued. As a result of the transaction, TRXO will assume ownership and operatorship of all of WIOG operated properties and leases in Wyoming.
Key attributes of WIOG properties include the following:
•Approximately 15,895 gross (8,643 net) acres located in Big Horn, Carbon, and Park Counties, Wyoming.
•Approximately 54% of the acreage is operated, and 46% is non-operated.
•Essentially all of the acreage is held by production from existing wells and production units with net revenue interest greater than 75%.
•Average net daily production during the fourth quarter of 2014 of approximately 50 BOE per day (approximately 98% oil).
Net proved developed producing ("PDP") oil and natural gas reserves of approximately 174,000 BOE (approximately 100% oil) as of December 31, 2014, based on an independent reserves analysis prepared by Netherland Sewell. Notably, no proved developed non-producing ("PDNP") nor proved undeveloped ("PUD") reserves have been assigned to these properties.
The WIOG assets strategically place TRXO in three basin resource plays in Wyoming. The acquired acreage increases TRXO's total acreage position in Wyoming at March 31, 2015 to approximately 34,455 gross (19,579 net) acres, providing TRXO with an increased operational footprint throughout the northern Rockies.
Pursuant to the final terms of the transaction, TRXO assumed debt obligations of approximately $650,000. The transaction makes WIOG shareholders one of TRXO's largest shareholder groups with approximately 48% ownership when all shares are exchanged. Two directors from the WIOG shareholder base will be appointed to the TRXO Board within the next 30 days.
Don Walford, Chairman and CEO of the TRXO, stated, "We are pleased to have successfully closed this acquisition with WIOG shareholders, and we are excited to expand our prospect areas in prime Wyoming resource plays with some proven production. We look forward to having Eckhardt Huber-Flotho and Werner Georg Biberacher join our board and combining the key employees of WIOG into TRXO, all of whom add expertise and deep industry experience to our own experienced staff. We believe together we can continue to build focused industry players in the Northern Rockies in Wyoming."