Petrobank Snags 25 British Columbia Sections, Plans to Drill in 2009

Petrobank Energy & Resources Ltd., Calgary, has acquired 25 sections of land in Northeast British Columbia to pursue gas in the Devonian Muskwa and Evie shales of the Horn River basin and plans to drill its first vertical well in early 2009.

Petrobank also signed a definitive agreement to buy for $53 million an undisclosed private company that owns 15 sections with strong horizontal development potential in the Triassic Montney formation in the Monias area northwest of Dawson Creek. Consulting engineers assessed the recoverable potential at 148 bcf. Two vertical wells produce 150 Mcfd, and the properties include a 5 MMcfd gas plant.

Petrobank plans to complete the acquisition by October 2nd and to drill two horizontal Montney wells on the lands in 2008.