The Test Well was drilled for a new Mannville exploration target adjacent to Questerre's existing Mannville G Pool. It was successfully drilled on budget and cased as a potential gas producer from the primary horizon. Subject to weather, Questerre anticipates the well will be completed and tested late in the second quarter.
The Test Well was the first in a multi-well program drilled under a recent participation and farm-in agreement for the Vulcan area. Pursuant to the agreement Questerre and its partners will each earn a one-third interest in 4,480 acres for drilling two wells, subject to the payment of a 15% gross overriding royalty ("GORR") on production. The partners have an option to earn, on the same terms, an additional 1,920 acres by drilling a third well.
Questerre contributed a further 1,280 acres of its land in Vulcan to this joint venture. In consideration of a 15% GORR payable to Questerre, its partners will each earn a one-third interest in this land by funding their proportionate share of costs to drill a minimum of one well on this acreage. Questerre expects this well will spud in the summer.
Michael Binnion, President and Chief Executive Officer, commented, "Through this joint venture, we are now participating in a total of nine sections of exploration land near our previous discoveries in Vulcan. Our first of three committed wells is a new pool discovery demonstrating the success of our exploration model. We are looking forward to building on our past success in this area."
Questerre Energy Corp. is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.
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