The well is currently at an approximate depth of 1,600 meters. It is anticipated that the drilling of the well could be completed within the next one to two weeks.
The well is part of an arrangement entered into by Park Place Energy with Terra Energy, pursuant to which, the corporation has participated in the drilling of two earning wells that each earned an interest in two sections of land. The corporation has a rolling option to continue drilling and earning on the same basis in a total of 21 sections making up the Eight Mile North project area.
Park Place Energy earns a 40% working interest in the test well/option well drilling spacing unit (DSU) subject to a royalty to Terra until payout occurs. After payout occurs on an earning well/option well basis, Terra’s royalty in the DSU reverts to an undivided 16% working interest and the corporation’s interest becomes 24%, which is the same interest that the corporation also earns in the balance of the two section block excluding the DSU.
