Bakken Resources, Inc. (OTCMKTS:BKKN) Files An 8-K Completion of Acquisition or Disposition of AssetsItem 2.01 Completion of Acquisition or Disposition of Assets
On May 4, 2018, Bakken Resources, Inc. (the “Company”) acquired an overriding royalty interest in what is currently twenty-five oil and natural gas wells in the Denver Julesburg basin also known as the Niobrara-DJ Basin (the “Acquisition”). The Niobrara-DJ Basin is a crude oil and liquid gas play that is located in Northeast Colorado and Southeast Wyoming. The Acquisition was completed with an effective date of January 1, 2018 and the purchase price was $1 million. An estimated $220,000 in currently held in escrow to reflect royalties accrued since the effective date of January 1, 2018.
These acquisitions were facilitated by EnergyNet.com (EnergyNet), a mineral rights auction house based in Amarillo, Texas. The Company may continue to complete acquisitions through the EnergyNet platform, and will continue to separately announce such acquisitions that are significant as contemplated by this Item 2.01.
EnergyNet hosts a well-known industry online auction house for the buying and selling of mineral rights. EnergyNet’s listed auctions relate primarily to assets located in the continental United States. Sellers post properties on the EnergyNet online portal and potential buyers are invited to bid on such properties. Sellers also generally include additional information regarding the assets to assist in the diligence of such assets. Potential buyers are also permitted to contact the Sellers directly for questions prior to the close of the auction. Sellers may set certain minimum, or reserve prices, that bidders must reach in order to successfully purchase the properties in question. Sellers make certain representations relating to the properties that are posted for auction, but Buyers generally assume title risk on the properties and are encouraged to conduct diligence.
Exhibit 99.1 to the Current Report on Form 8-K filed with the Securities Exchange Commission on December 20, 2017, contains the primary standard form documents entered into between buyers and sellers of properties listed on EnergyNet, and are incorporated by reference in this Current Report.
About Bakken Resources, Inc. (OTCMKTS:BKKN)
Bakken Resources, Inc. is an early-stage company. The Company is an oil and gas exploration company, with properties located mostly in the Bakken. As of December 31, 2014, the Company owned mineral rights to approximately 7,200 gross acres and 1,600 net mineral acres of land located over eight miles southeast of Williston, North Dakota. The Company intends to focus on evolving into an independent energy company engaged in the acquisition, exploration, exploitation and development of oil and natural gas properties. The Company’s activities are focused mainly in the Williston Basin, a sedimentary basin in eastern Montana, Western North and South Dakota, and Southern Saskatchewan known for its deposits of petroleum and potash. The Company holds mineral acreage in the Duck Lake region of Western Montana, in an oil play commonly referred to as the Alberta Bakken, as well as approximately 17% working interest in an operating well located in Archer County, Texas.