West Energy Ltd. and Canada Energy Partners Inc. have entered into a joint venture agreement in the Monias area of northeast British Columbia. The joint venture is within the major Montney/Doig formation gas trend that has gained considerable market attention in recent weeks.
The Agreement covers the deep rights on nine sections (approximately 5,866 gross and net acres) on Canada Energy's Monias property. Pursuant to the terms of the Agreement, West will conduct an exploration program, the primary purpose of which will be to test the potential of the Montney formation.
The exploration program is expected to consist of a three-dimensional seismic project over the majority of the Monias lands and the option to drill up to three exploratory wells. West will pay 100% of the costs through to completion to earn its 65% interest in the deep rights and will operate the project. Canada Energy will own the remaining 35% working interest. Three-dimensional seismic is already underway and well spotting and permitting of the first test well has commenced. Canada Energy will retain its 100% working interest in the rights to the base of the Nikanassin on the lands.
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