Reece Energy Exploration Corp. has signed a purchase and sale agreement in which it will acquire a 100% working interest in an additional 760 acres of mineral rights adjoining its existing Viking light oil play near Dodsland Saskatchewan.
Included with this acquisition are 30 producing vertical oil wells, with total production of approximately 50 bbl/d. The total purchase price for this acquisition is $5.75 million.
The acquisition of this land will allow Reece to drill an additional 9 horizontal wells in the field. The effective date of the acquisition is August 1, 2008, and it is expected to close on or about August 15, 2008.
"Due to the proximity of this acquisition to Reece's most productive wells in the area, we are expecting similar results from wells drilled on this new acreage," said Lorne Swalm, President and CEO of Reece Energy.
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