Granite Energy completes New Mexico acquisition
  by: OilOnline
  Wednesday, October 18, 2006

Granite Energy, Inc. has acquired The Escavada, an exploration prospect located in San Juan County, New Mexico. The Project currently has under contract 2,300 acres with an additional several hundred acres under negotiations. The Escavada Prospect contains a total area of interest of approximately 5,000 acres, under the geological concept. This high quality exploration Prospect, "Escavada Prospect" originates from a regional seismic play undertaken by a major domestic oil company. Should the test well be successful, the Escavada Prospect could generate as many as fifty (50) additional developmental drilling locations. In addition, Granite will have the first right of refusal on several other prospect leads in the region which have in excess of 2,000 acres for lease and potential development.

“Acquiring this prospect that ConocoPhillips, Inc. originally identified in the 1990’s and subsequently expended significant resources on seismic studies is a tremendous step for Granite Energy. As an independent oil and gas company, we are fortunate, through our industry relationships, we were even given the opportunity to review this program. Once our consulting geologist and reservoir engineers had an opportunity to study the regional analysis, it became our priority to make this transaction happen as quickly as possible,” stated S. Matthew Schultz, Granite Energy, Inc.’s Chief Executive Officer. “We plan to begin the permitting process for our initial well as soon as it is prudent.” Schultz continued.

The company also announced the relocation of its headquarters to Salt Lake City, Utah.