MGM Energy Corp. has entered into a farmout agreement with Shell Canada Energy ("Shell") pursuant to which Shell has agreed to fund the drilling and completion of up to two wells in the Central Mackenzie Valley Canol shale oil play to earn an interest in MGM Energy's Exploration Licence 466B.
The details of the agreement are as follows:
MGM Energy filed a Land Use Permit and Water License application with the Sahtu Land and Water Board in May 2012 to drill a vertical well on EL466B and expects to receive a final decision in the near future.
"We're extremely pleased to have entered into this farmout agreement with Shell" said Henry Sykes, President of MGM Energy. "Shell has extensive experience with shale plays throughout North America and is one of the pre-eminent developers of shale plays in the world. We look forward to working with them in the Central Mackenzie Valley play. We are extremely excited about the Canol shale play, and this agreement provides us with the ability to assess its potential. We look forward to providing regulatory and operational updates on EL466B as events occur."
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