The farm-in agreement will allow Endeavor Energy to develop the prolific Chigwell area of east central Alberta. The Chigwell area is prone to oil and gas in various reservoirs from the deep Leduc to the shallow Belly River sands. Endeavor's prospects are in the middle Mannville Glauconite formation and the Lower Mannville sands.
Endeavor has 100% working interest. Under the terms of the agreement, Quicksilver will retain a 15% non-convertible override. Endeavor anticipates that drilling, which will be operated by the Company, will commence within 60 days.
"Endeavor is drilling for 2 stacked channel sands which are thick (+/- 100') and contain both oil and gas," states Endeavor's VP Operations Keith Miles. We are offsetting a channel, which runs E-W through the subject lands. The initial location is 2-24-43-26W4M. These channels are very porous and permeable and should contain considerable recoverable reserves. The well will be drilled directionally to a depth of 5410' (1650m.) Initial production is expected to be 60-110 barrels of oil per day and/or 500 thousand cubic feet per day."
"We are very pleased to work closely with such a major industry player such as Quicksilver," said Cameron King, CEO of Endeavor Energy Corp. "We are confident that this partnership will yield significant results, benefiting both our companies. We believe that teaming up with major producers like Quicksilver is critical to our mission of expanding our portfolio of projects as well as our bottom line."
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