This comprises a 20% increase in the company’s Deep Rights land base. The lands purchased are in close proximity to the company’s first horizontal Montney well, the Portage c-20-E, which is currently being completion tested and lies between the Peace River Project and the Talisman/Canbriam Farrell Project.
Canada Energy is carried by the JV partner through the completion of the c-20-E and a further $11m of joint exploration expenditures. Canada Energy will have a 50% working interest in the deep rights at Peace River Project upon the JV partner’s completion of its earn-in obligations.
Canada Energy owns a 50% interest in the Peace River Project gas plant and connection to the Spectra Energy sales pipeline, which will be available to bring this Montney gas to market.
The JV partner has obtained a drilling permit for the second horizontal Montney well and plans to start drilling prior to July 15. This well is expected to be completed and tested in early Q4, 2010.
