The agreement also relates to a previously announced shale gas farm-out in New Brunswick on March 19th 2007, in which Triangle's name was purposely withheld until negotiations on this second block of ground were completed. Contact has now secured both agreements with Triangle and looks forward to working with them on these two exciting shale gas prospects.
Located in the Windsor region of Nova Scotia, the Shale Gas Prospect covers 516,000 acres in what Triangle concurs is a highly favorable geological setting with comparable geological attributes to the Barnett Shale project in Texas and the Fayetteville Shale project in Arkansas. Triangle's evaluation of the Shale gas play in Eastern Canada began in the spring of 2006 with the company's decision to proceed following its extensive screening and technical work-over including evaluating historical information available from previously drilled conventional wells.
Under the terms of the farm-out, Triangle will be entitled to earn a 70% working interest in the block subsequent to paying an $80,000 deposit to the Nova Scotia government prior to September 15, 2007 and then electing to drill a test well no later than September 15, 2008. Contact will retain a 30% working interest subsequent to Triangle's earn in commitment.
"We are delighted to bring in such a strong industry partner on both of our shale gas prospects in New Brunswick and Nova Scotia," comments Terry Brown, President of Contact Exploration. "Triangle as a partner brings the benefit of both technical expertise and profile to this exciting unconventional gas prospect in Eastern Canada."
Contact Exploration Inc. is a junior exploration company with a focus on Canadian East Coast onshore exploration. Contact's land claims and holdings are located in close proximity to the largest consumption markets in North American with pipeline and refinery infrastructure in place.
Contact has interests in approximately 1.5 million acres onshore Nova Scotia, approximately 160,000 acres onshore West Newfoundland and 165,000 acres onshore New Brunswick which includes the Stoney Creek Field.
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