Additionally, the Company announces that it has received final approval from the Bureau of Indian Affairs on the previously announced amendment to the Company's Indian Mineral Development Agreement with the Blackfeet Tribal Business Council. By this amendment, the Company has acquired the rights to an additional 100,000 tribal mineral acres, with consent to lease an additional 100,000 acres of non-tribal lands, within a designated 200,000-acre land block on the Reservation. These lands represent a significant potential resource within the shallow gas play of the Bow Island Formation on the eastern edge of the Reservation.
The Bow Island Formation is a shallow, low-pressure gas reservoir. New drilling technology and the development of specific completion techniques have allowed the Company to drill, evaluate and commence initial production from this previously under-developed resource. In follow-up to the initial success of the Bow Island Palmer project, the Company entered into the above amended agreement with the Blackfeet Tribe to acquire the additional acreage.
The Company is currently designing a two-stage drilling program that is expected to provide significant growth in production by the end of the year. Design of the current production facilities have made it possible for the Company to quickly tie-in future drilling which will reduce sales delay and improve the economic return of the project. The management team of the Company continues to make every effort to reduce development costs and increase production rates to maximize the profitability of the project.
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