Blackdog is participating in the drilling of an approximate 3000 meter deep Leduc Reef Exploration well (the "Well") near Sylvan Lake, Alberta. The target was defined using extensive 3D seismic analysis and the Company believes the target is prospective for light oil.
Under the terms of a farm in agreement, Blackdog is paying 25% of all costs to testing or abandonment to earn a 15% working interest ("W.I.") in the Well and entire section of land the Well is situated on. The Company believes that a successful well could lead to the drilling of two additional wells on the same section of land.
Also under the terms of the farm in agreement, Blackdog received an option, at the Company's discretion, to participate in the drilling of a second Leduc Reef Exploration well in the Sylvan Lake area. Blackdog would pay 25% of all costs to testing or abandonment to earn a 16.25% W.I. in this well and the land it is situated on. Blackdog has a 72 hour window from the casing or abandonment of the first exploration well to exercise this option.
The first well has been spud and the Company expects to announce results during the month of September.
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