PetroGlobe Acquires Stake in West Texas Acreage
PetroGlobe has entered into an participation agreement with Vintage Petroleum to earn a 10% working interest within a defined Area of Mutual Interest (AMI) of approximately 63,000 acres in Motley and Floyd Counties of West Texas. The first of two planned exploratory wells to evaluate the commercial potential of the unconventional shale gas play has been drilled and is currently being evaluated by Vintage as the operator of the project.
In 2004, PetroGlobe drilled 4 wells in the Bolloque and Cynthia areas of central Alberta with three of the wells encountering natural gas. The wells were completed and currently are being evaluated for stimulation to increase productivity. The company has several additional locations in the area that it expects to drill in the third quarter of this year. Following the drilling and completion of these wells, the company expects to have the threshold volumes needed to begin construction of the gathering system and a sales gas line.
PetroGlobe also announces the successful negotiation of a 6 townships farm-in with a major operator in the Pembina area of Alberta. The farm-in includes all rights from surface to the base of the Edmonton Group. Multiple targets in Paskapoo, Scollard, Edmonton and Bearpaw sands have been mapped and identified. Infrastructure is available in the area and depending on the availability of rigs and spring break-up PetroGlobe anticipates beginning drilling within the next two months. PetroGlobe has identified 40 to 60 potential locations over the next two years.
These programs will require approximately $4 million of capital in 2005.
Management is currently evaluating its funding options and expects to
make an announcement in the near future.
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