Stealth Ventures has signed a joint venture with MOI Resources (MOI) looking to expand into the Colorado Group of Shales (Colorado) resource play. "We're excited to be entering into a partnership with Stealth and see a lot of potential in the Colorado. It's a good time to be entering into the gas markets as we probably wouldn't have had this chance if gas was $10/mcf." said MOI Resources' Chief Executive Officer Kerwin Mondor.
The Cretaceous Colorado group in the WCSB is represented almost continuously in a 1000km east-west profile. Of the over 250,000 well bores that penetrate the Colorado, most have been drilled to target deeper horizons. Derek Krivak, President and CEO of Stealth said, "There is a lot of running room for the Colorado and there is no question that Stealth's efforts are just the tip of the iceberg. There is more potential than we would ever be able to manage on our own and so we're excited to be expanding our efforts with MOI." No further terms or conditions were announced.
Further to Stealth's initial downspacing approval by the Alberta Energy Resources Conservation Board to proceed with eight wells per section on two sections of land in the Wildmere area; the Company has added an additional 17 sections bringing the total sections to 19 which are available for 8 wells per section drainage on Stealth lands in Wildmere. Fekete Associates completed extensive rate transient analysis on location 15-10-50-06 W4M which had over two years of production data and showed ultimate well density will approach 18 wells per section (36 acre spacing) to ultimately drain the resource before interference is found. An additional 11 sections are currently awaiting decision by the Board with the remaining Stealth acreage (80+ sections (gross)) in process with Fekete. With full spacing approval, Stealth will have hundreds of locations available to the Company for development.
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