Arctic Hunter continues production growth and completes another well at Blackfoot
Tuesday, February 7, 2012
- Arctic Hunter Energy announce that the Company has participated in successfully drilling, completing and bringing onto production another well situated on its Blackfoot property located in east central Alberta.
As previously announced by the Company (see press release dated December 6, 2011), the Company entered into a farm-out agreement with Sahara Energy Ltd., Forent Energy Ltd. (as Farmors) and Petrocapita Oil and Gas L.P. (as Farmee together with the Company).
Under the terms of the farmout agreement, the Company and Petrocapita have agreed to spud one test well by December 13, 2011 on Lsd 4, Section 2-50-2W4M in the Lloydminster area of eastern Alberta. Arctic Hunter and Petrocapita paid 100% of the costs (50% to Arctic Hunter and 50% to Petrocapita) to drill, complete and equip or abandon the test well to earn a 100% working interest (50% to Arctic Hunter and 50% to Petrocapita) subject to an overriding royalty in favour of Sahara and Forent equal to (a) 6% of gross monthly production from the well until payments of $43,781.85 have been made pursuant to the royalty; and (b) 5% of gross monthly production thereafter.
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
article may not be suitable for all investors, and if in doubt, an investor should seek advice from
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