Pemberton will retain 75% beneficial interest of the 50% undivided interest over a 2-year term. The property is located west and contiguous to the company's key Peace River Arch property.
The company will assume 50% of the drilling and completion costs of the well, inclusive of all operating, processing, transportation, and production costs. The acquisition gives Pemberton a sizable land position in a very productive region of the Peace River Arch.
In addition, Pemberton said that it is negotiating a joint venture with a company that holds the other 50% of the undivided interest in the 507-acre parcel. It will also extend its 3D seismic program to encompass the acquisition. Terms and conditions of this joint venture will be disseminated upon completion of the negotiations.
"Management is pleased with its latest land acquisition and a prospect of a joint venture," said Miroslava Antoniouk, Pemberton's director. "[I]t gives the company a greater land position surrounding the company's current targets in the Peace River Arch area and reduces financial risk associated with exploration, drilling, and completion of possible targets. The company believes that sharing costs associated with this petroleum property development will increase shareholder value."
Calgary-based Pemberton's principal business is the acquisition, exploration, and development of petroleum properties. The company continues to focus on its primary corporate objective: the creation of value for shareholders by identifying oil and gas accumulations with relatively low geological risk but with substantial reserve potential.
Most Popular Articles
From the Career Center
Jobs that may interest you