Unitech Energy Resources has farmed-out approximately 7% of its high impact Keg River prospect in NE British Columbia. Unitech recently closed its fully-subscribed $1.35 million Inverted Special Warrant private placement which closing provided the funds to acquire an additional and approximate 23% non-promoted working interest in the high impact prospect.
Prior to the private placement closing, Unitech held an approximate 7% working interest which, when combined with the new interest, would have provided for Unitech to hold an approximate 30% working interest. Unitech management believes it is in the best interests of the shareholders to preserve working capital over its 23% working interest requirement and the farm out was conducted to satisfy this need. The working interest was farmed-out on a promoted basis which allows for Unitech to maintain an interest in the farmed-out portion without the attendant capital risk.
The test well on the Prospect, which was drilled and cased in the Spring of 2007, is now ready for completion and the operator has notified Unitech that the completion process has begun. The completion is expected in January, 2008.
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