Stealth, BlackWatch Shake on Drilling Deal
Stealth Ventures Ltd. has entered a long-term operating agreement which will give BlackWatch Energy Services Trust a right of first refusal for providing drilling rig services for Stealth's shale gas development program in the Wildmere region of Alberta for the remainder of 2008 and all of 2009. In return Stealth has been given preferred fixed pricing for the 08 and 09 drilling campaigns.
"We are pleased with the outcome of our negotiations with BlackWatch and feel that our agreement provides us with excellent visibility on our drilling costs into the winter of 2008 and through 2009," said Derek Krivak, Stealth's President and CEO.
To date the program has been drilling ahead of schedule and under budget with 27 of the scheduled 70 wells completed and frac and tie-in operations on the way.
Travis Robertson, President of BlackWatch, said, "This is a great opportunity for the BlackWatch drilling organization to continue to exceed our clients' expectations by delivering outstanding drilling efficiency. We also look forward to working with Stealth to investigate ways to further reduce their drilling costs through the application of innovative shallow drilling methods."
The 2008 shale gas development program in Alberta has shown fundamentally sound production numbers and with capital costs under budget and the program ahead of schedule, Stealth's shale gas play in the Wildmere region will remain the key corporate focus for solid growth in 2008 and beyond.
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Company: BlackWatch Energy Services Trust more info
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