Earthstone Energy Reports Sale of Non-Core Property for $6.25M

EARTHSTONE ENERGY, INC. (Nasdaq: ESTE) is pleased to announce the divestiture and sale of its Antenna-Federal property in Weld County, Colorado to an unrelated third party. The aggregate purchase price to be received by the Company is $6.25 million. After deduction for commissions, marketing costs and required payment to participants of the Oil & Gas Incentive Compensation Plan, the Company expects to have aggregate net sale proceeds available to it of approximately $5.85 million. The Antenna-Federal property is a single, 640 acre section in the Wattenberg Field, in which Earthstone has interests in 38 producing natural gas wells. Earthstone owned between 15% and 60% working interest in 25 wells and had an overriding royalty interest in 13 wells. In addition, some working interest wells also contained an overriding royalty interest. While the Antenna-Federal property was initially placed on production in 1988, the newest wells were completed earlier this year. The property represents substantially all of Earthstone's Colorado properties. The wells, while profitable, are considered non-core properties by Earthstone, given the Company's focus on other areas, primarily the Williston basin. The revenues and gross profits received from the wells during the first half of the current fiscal year were approximately $800,000 and $700,000, respectively. The Company expects the cash generated from the sale to be invested in on-going and new ventures elsewhere, but primarily in the Williston basin.