EARTHSTONE ENERGY Provides Update on Its Horizontal Ratcliffe Project and Acquisition of Additional Lands/Wells

EARTHSTONE ENERGY, INC. ESTE reported today that, along with its partners, it has acquired an additional 320 acres in its previously announced horizontal Ratcliffe project in the Rush Mountain Field, Sheridan County, Montana. The project now contains a total of 2,600 gross acres (195 net) that could eventually be developed on 160 acre spacing; theoretically, a total of 16 wells. Included in the acquisition is a working interest in two wells. One of the wells, the Hoffelt 2, is an existing vertical Gunton producer making approximately 16 barrels of oil per day.  The second well, the F. Hoffeldt 1 SWD, is an existing salt water disposal well. In this transaction, Earthstone acquired a 7.5% working interest in both the leasehold and the wells for approximately $240,000. The project is operated by Vess Oil Corporation (Vess), a private, unrelated third party.