Northern Sun Exploration says that drilling has begun on the Company's joint venture, 2,255 meter Leduc oil test on the Company's joint lands in the Worsley-Clear Hills area on the Peace River Arch. The Company has received its equalization payment from its joint venture partner totaling 50% of the Company's investment in the joint lands. Both the Company and the Partner will pay 50% of the costs associated with the drilling, casing and logging of the well. Upon a successful well, and equipping and pipeline tie-in, each will earn a 50% working interest in all production, title documents and joint lands. The Company is carried on certain costs associated with the completion and equipping that provides a promote to the Company from the Partner.
Upon a successful well, the oil will be trucked to the nearest facility 15 miles from the well site immediately upon production. A 500-meter gas pipeline will also be constructed in order to conserve gas if necessary.
Well results will be made available after well completion and testing have established reliable production data.