As previously advised, the License covers approximately two million acres and has a primary term of seven years with an agreed minimum work program of US $25.6 million, including the drilling of one well in each of year four and year seven. The License is held 100 percent by Petrolifera, the operator. Connacher retains a 10 percent carried working interest through the drilling of the first well in exchange for its guarantee. The carried working interest is exchangeable into a two percent gross overriding royalty in certain circumstances, and Petrolifera has a right of first purchase of Connacher's interest in the License.
Connacher is a public Canadian company listed on the Toronto Stock Exchange under the symbol CLL. Its principal asset is a 100 percent interest in 64,640 acres at its Great Divide project in the Alberta oil sands. Connacher also owns 40 percent of and provides management services to Petrolifera. Petrolifera is a private company with interests in the Neuquen Basin, Argentina and in Peru.
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