Black Bear Resources, is a limited liability company formed under Delaware law in 2011. The Company’s principal office is located at 10390 39th Street, Suite 4, Lake Elmo, Minnesota. The Company was formed for the primary purpose of developing a “non-operator” model for the participation in oil drilling and extraction activities focused in the Bakken and Three Forks shale oil formations in western North Dakota and eastern Montana, or in similar geologic formations located elsewhere in the United States. The Bakken and Three Forks formations are located within the Williston Basin, a geographic area in eastern Montana, western North Dakota and South Dakota and southern Saskatchewan known for its rich deposits of petroleum, natural gas and potash.
Under a “non-operator” model, a company owns an interest in the mineral rights associated with a drilling operation on a given spacing unit, but does not directly participate in drilling or operations incident thereto. Instead, an operator company bears primary responsibility for conducting drilling operations. In exchange for its proportionate interest in the profits of the drilling operation, a non-operator contributes to, or “participates in,” the costs associated with the drilling operation. As a non-operator, the Company intends to capitalize on the investment opportunities presented in the Bakken and Three Forks shale oil plays while minimizing its requirements for capital expenditures, employees, and other overhead costs.
The Company will be operated with two main goals: (1) build, maintain, and trade an inventory of oil, gas, and other mineral leasehold and ownership interests to produce profit and to strategically position the Company’s holdings to take advantage of future opportunities to participate as a non-operator in oil and gas exploration; and (2) increase the revenue potential of the Company by participating in drilling and completion costs as a non-operator, through direct investment into drilling and completion costs (tangible and intangible drilling costs) as opportunities materialize.
Black Bear Resources has been operating in the Basin since 2011 and benefits from:
Strong management and operations team with proven track record and local expertise;
$15 MM historic expenditure invested in acreage and over 200 gross wells;
Partnering with industry-leading operators, and;
A well-developed extensive local network allowing access to acreage.