Eternal Energy has successfully completed drilling and casing its Hardy S 1A4-16-4B4-9-04-21W2 well (the "Hardy 4-16 well") ahead of schedule. The Bakken formation well was drilled to a depth of approximately 3,504 meters and extended horizontally for approximately 1,320 meters, and is located approximately one-half mile west of Eternal Energy's current Hardy 7-9 producing well (owned equally with its proposed merger partner, American Eagle Energy Inc.) in southeastern Saskatchewan. The initial drilling was completed in 18 days instead of 21 days, as originally expected. The Company expects to complete a 29-stage fracture stimulation of the well later this month.
Eternal Energy, American Eagle Energy Inc. and Passport Energy Ltd. are working interest partners in the Hardy 4-16 well. Pursuant to the previously announced farm-out agreement among the three companies, Eternal Energy and American Eagle Energy Inc. will each maintain a 37.5% working interest in the new well, but each will only pay 30.75% of the drilling, completing and equipping costs. The remaining drilling, completing, and equipping costs will be paid by Passport Energy Ltd., which will earn a 25% working interest in the well. The Hardy 4-16 well represents the initial earning well for the farm-out agreement among the three companies.
"We are excited to announce that we have successfully completed the drilling of the Hardy 4-16 well ahead of schedule and under budget," stated Brad Colby, the Company's Chief Executive Officer and President. "The completion of the first offset well in the Hardy Field is an important milestone in our drilling program and a significant step forward in our plan to increase our revenues through development of our significant Bakken acreage in the Williston Basin."
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