Patch has a 100% working interest in the test well and spacing unit. The interest is subject to a 1% gross overriding royalty on the prospect and an overriding royalty on the test well, payable to the farmor that is convertible by the farmor after payout to a 50% working interest. In addition, upon completion of the test well, the company will earn a 50% working interest in the remainder of the lands comprising the prospect.
"It is very exciting to have a new conventional drill prospect to add to our existing oil and gas prospects and our four Alberta Oil Sands properties," said John Thornton, Patch's president. "Alberta is one of the largest oil and gas regions in the world and we look forward to drilling this new prospect shortly. We anticipate that the Halkirk property will be our first of four oil and gas drilling projects for Patch this summer. We are continuing to look for ways to add shareholder value to Patch by drilling our conventional projects, building value into our Alberta Oil Sands projects, and by continuing to seek out new opportunities to acquire or takeover."
Patch International is a junior oil and gas producer that currently earns oil revenue from a participation interest in 20 oil wells. These wells provide the company with some short-term and long-term cash flow. The company has drill programs on five properties in Alberta scheduled for this year. It has properties in North America, including one in the heart of the Alberta Oil Sands that will begin a work program in 2006.
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