Energy Power Systems Expands Drilling Program
Energy Power Systems Limited announces that a recent 3D seismic program in the Farrow Prospect, Alberta has identified a valley fill channel complex that covers approximately 1/2 a section of land (320 acres). Re-entry of a previously logged and cored well bore has now commenced to drill out cement plugs, complete and test the potential of 10 meters (approximately 32 feet) of oil pay in the Glauconite Channel. If successful the re-entry well could be first of a multi well program in the Farrow Prospect. Energy Power holds a 31.5% interest in the Farrow Prospect.
Energy Power has now agreed to participate in an exploration program encompassing 6 sections of land (approximately 3840 acres) in the Olds area of Alberta (the Olds Prospect). The initial program will drill 3 prospective plays of 2 sections each (1280 acres) (a Test Well and an Earned Section). One well is a multi-zone natural gas prospect and the other two Test Wells are expected to be Viking gas by-pass pay zones. Drilling of the first Test Well is imminent and the other 2 Test Wells are anticipated to spud by the end of October. The Company has a 25% interest before payout and a 12.5% interest after payout in each of the Test Wells in the Olds Prospect and earns a 12.5% working interest (Earned Interest) in an additional land section by drilling each Test Well. If successful the program operator anticipates further drilling of the 3 Earned Sections in the new year.
The Company has a 30% interest in a prospect in the Cherhill area of Alberta. The Cherhill Prospect indicates a 2.5 meter (approximately 8 feet) natural gas pay zone in the lower Belly River formation. The spudding of this well is also expected by the end of October.
The multi well program is expected to cost up to $900,000 depending on completion costs and will be funded from current working capital.