Questerre also reported that it has recently finalized the participation and farm-in agreement with Gastem for the Yamaska licenses. Pursuant to this agreement, Questerre will hold a 7.5% gross overriding royalty convertible into a 20% working interest on these licenses.
The operator, Gastem, announced earlier this week that site preparation is complete and the well is expected to spud later this month. The well is the first of two wells to be drilled by Gastem with the primary target in the Utica shales. Target depth is 1800m and the well will also evaluate the deeper Trenton Black-River for conventional reservoir and gas storage potential.
Gastem has entered into a farm-in agreement with a major US independent for these licenses. The agreement allows its partner to evaluate these wells, including testing and fracture stimulation of the Utica shales. The partner may commit to further exploration work of up to $10 million to earn a 60% working interest in these permits.
Questerre Energy Corporation 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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