Development is expected to begin in the summer of 2010 and Pemberton has already received joint venture proposals on this prospect. The company continues further negotiations for additional lands in the area.
Reflecting on Scotia Capital Resource Spotlight Report, issued in September this year, an estimated six billion bbls of oil is still in place in the Viking formation. The report states new horizontal drills in the area pay for themselves on an average of 1.3 to 1.6 years.
Drilling and completion costs average $1.3m, and land sales in this region can average up to $3625.40/Ha. Spacing units in this area allow for up to 16 vertical oil wells per section. Pemberton said that additional asset will bring long term sustainability for the company. Finders fee may be payable on this acquisition subject to regulatory approval.
