Broomfield’s T-Rex buys Wyoming’s Western Interior for $30M

BROOMFIELD – T-Rex Oil Inc. (OTCB: TRXO), a Broomfield energy company, has acquired Western Interior Oil & Gas Inc. of Casper, Wyo. for about $30 million, T-Rex CEO Don Walford said.

T-Rex Oil acquired the oil and gas exploration and production company through a share exchange. T-Rex will take possession of Western’s property and leases in Wyoming, including more than 8,600 net acres in Big Horn, Carbon and Park counties in Wyoming.

Average daily production during the fourth quarter totals 50 barrels of oil equivalent, with the potential for eventually producing 174,000 barrels of oil equivalent per day, T-Rex said.

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The deal makes Western Interior shareholders among T-Rex’s largest shareholder groups with 48 percent ownership when the companies exchange all their shares.

Two directors from Western Interior’s shareholder base will be appointed to serve on T-Rex’s board within the next 30 days.

T-Rex Oil employs six people; Western Interior has three employees, Walford said. Western Interior has developed seven oil and gas development projects, which eventually will employ 40 to 50 contract workers.

T-Rex will drill wells on Western Interior’s leases, but will wait until oil prices rebound to produce oil, Walford said. West Texas Intermediate crude oil spot prices fell 5 percent to $50.99 on Wednesday, down from highs topping $100 last year.

Drilling the wells now will help the company hold its leases, he said.

“At some point… we’ll start producing them, because right now, the profitability is not great,” he said.