X-Change Corporation (OTCQB: XCHC.PK) announced today through its subsidiary Cress Oil, Inc., an independent exploration and production company based in Houston, Texas that it has executed a deal for 15,000 net mineral acres in Roosevelt and Daniels County, Montana with Diverse Energy Investments, LLC. The transaction price is Eight Million Eight hundred twelve thousand ($8,812,000.00). The closing date is set for August 10, 2012.
“The additional acreage in Daniels and Roosevelt County is a great fit with the company’s drilling and production strategy in the NE Montana Bakken shale play," states Atul Trivedi, chief executive. "By acquiring a footprint of 150,000 net acreage positions in northeast and central Montana, the company can focus on its aggressive drilling program it has planned for 2012 and 2013.”
The Bakken Shale in the NE Montana area is from the Devonian Mississippian age. The widespread Upper Devonian-Lower Mississippian Bakken formation consists of an upper and a lower shale member with a mixed siliciclastic carbonate middle member that is usually referred to as dolomitic sand (or a sandy dolomite). Both the upper and lower shales are organic-rich marine shale of relatively consistent lithology. These shales are both the petroleum source rocks (organic rich) and seal for the reservoir.
The Bakken has reserve estimates up to 24 billion barrels of recoverable oil. More than 6000 wells are active in the Bakken shale, and wells continue to be drilled in North Dakota and NE Montana. The shift is moving towards aggressive drilling in the NE and central Montana Bakken Shale counties.In addition -- X-Change Corporation announced today that it amended its contract for additional funding through La Jolla Cove Capital Investors to meet the growing capital requirements of Cress Oil, a wholly owned subsidiary of X-Change Corporation. The Company entered into a financing arrangement with La Jolla Cove Capital that provides $2,800,000 of additional equity financing over a period of 18 months.