PanTerra Reports Deeper Rights Seismic Review Option
PanTerra Resource reports that in order to remain focused on its shallow gas potential covering its 1.1 million acres (gross) in Saskatchewan, it and its 50% partner have reached an agreement with Endeavor Energy and Ranchmans Resources whereby Endeavor and Ranchmans (together the "Optionee") have agreed to a 'Seismic Option' focused on the 'deeper rights' within the Company's Saskatchewan land base.
The agreement calls for the optionee to commit to a minimum expenditure of $500,000 on a seismic program on Company lands prior to year end, at which time the optionee shall elect to either commit to shoot an additional $500,000 seismic program on these lands or elect to drill a deeper well on these lands at a location of its choice. PanTerra and its partner will retain a 10% GORR on all of the deeper rights on these lands and have the option to participate in the drilling of any deeper test up to a maximum 20% working interest. All monies spent by the optionee will go towards any yearly work commitments of the Company under applicable government regulations and the optionee, once having earned in the lands, will pay its share of the yearly rental fees. Earning will be as per Saskatchewan Government license regulations as to depth drilled.
PanTerra Resource Corp. is an Alberta-based resource company focused on the exploration and development of unconventional shallow and shale gas. The Company holds three exploration permits and four licenses for a total of 1.1 million acres (550,000 acres net) on four properties in the province of Saskatchewan.