Contact Exploration Inc. announced that it has elected to participate on a working interest basis in the Windsor Shale prospect in Nova Scotia. Contact originally identified and acquired the Windsor Shale block in 2002 and subsequently farmed out a 70% working interest to Triangle Petroleum Corporation. Contact retained the right to participate with a 30% working interest or to convert its working interest to a 5% Gross Overriding Royalty. Contact has notified Triangle, the operator of the property, which it will continue as a 30% working interest partner.
"Contact is pleased to be an active working interest participant in the continued exploration and development of our exciting shale gas play," commented Darcy Spady, President and CEO of Contact. "We look forward to having our group liaise with the technical teams of Triangle and Zodiac Exploration Corp. to expedite the definition of this resource." Contact will continue its 30% working interest participation into the future as well as participate retroactively on the already drilled Kennetcook #2 well and the 3D seismic data that was procured by Triangle last fall.
Expenditures for the retroactive participation in the Kenetcook #2 well and seismic will be approximately $3 million. The Kennetcook #1 well was carried at no cost to Contact by Triangle as part of the earning process on the block.
More information on the next wells will become available as details on this summer's drilling program are finalized. The next well on the prospect is expected to spud in July and is a 3,000 meter vertical test that targets the deeper and considerably thicker shale package, in an undrilled fault block north of first two vertical test wells.
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