Lands End Seeks Farm-In Participation, Purchase of Pembina Property
Lands End Resources has announced election to participate 100% in completing and equipping 12-36-52-17 W5M well and the purchase of a property in the Pembina region.
Pursuant to the Farm-out Option and Participation Agreement dated March 11, 2008 and the amended agreement dated November 19th, 2008 with Alpetro Resources Ltd., Lands End has tested the 12-36-52-17 W5 Cardium well and has elected to participate 100% in completing and equipping this Block II well. Lands End and Alpetro will enter into a standard Farm-out agreement on the Block II earning well, wherein Alpetro retains a convertible override until payout and 40% after payout. Lands End has earned into both the Block I and Block II properties under the Farm-in agreement.
Lands End also announces that it has signed a purchase agreement to acquire 100% of one and one-half sections of land in the Pembina region with seven Cardium and Belly River wells. The purchase price is $1.8 mm and Lands End has paid a deposit of $180,000. There is a vendor take-back financing for $800,000 at 7% with a balloon payment in 12 months. The remaining purchase price will be paid in a series of cash payments related to corporate cash flow. The property has been producing approximately 20 bopd and there has been very little maintenance on the property for the last ten years. Lands End has commenced a recompletion and refurbishment program on the property.