Altima provided the following update on its Chambers, Alberta Property.
Altima has entered into a Farm-out and Participation Agreement whereby the farmee has agreed to drill a 3,100 meter Rock Creek test well on Altima lands on a pay 100% of the costs through completion to earn 60% in the well and farm-out lands. The farm-out well will test the multiple, liquids-rich, natural gas zones generally present in the area. The location in township 41, range 11, W5M has excellent 3D seismic support, which is expected to enhance the opportunity to encounter better than average producing zones. Rapidly improving and well tested limited entry multi-stage fracing, similar to such practices used in the Montney and Horn River plays, will be applied in the test well. Permitting has begun, and it is anticipated that the well will be spud the third week of September. The Company has retained the right to participate in a portion of the test well costs, which will result in Altima holding a 50% working interest in the farm-out lands.
Rick Switzer, President and CEO, said, "We are encouraged with recent on trend (horizontal) drilling results and the implication of new completion strategies on production profiles. These facts, when coupled with recently implemented Alberta Government policies on reduced spacing and new royalty structures, bode very well for Altima's exploration efforts at Chambers."
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