Triton to Participate in Alberta's Deep Foothills Test Well
Triton Energy announced that, pursuant to the terms of a Farm-in Agreement, the Corporation will be participating in a deep test well in the Tay River area in the foothills of Alberta.
The Test Well is licensed to a total depth of 5,462 meters and is targeting a Leduc reef formation that has been identified on proprietary 3-D seismic data. Geological and seismic interpretation suggests that the Test Well is targeting a structure similar in size to the structure that hosts the Tay River Leduc gas pool located approximately 12 kilometers north-northeast of the Test Well.
The Test Well is expected to spud within ninety (90) days, subject to certain industry standard conditions, and take approximately 145 days to drill to total depth. Triton has budgeted $4 million for its share of the costs to drill, case and complete, cap or abandon the Test Well and upon fulfillment of its earning obligations Triton will have a 12.5% working interest in the Test Well, Section 27-35-11W5M and ten (10) additional contiguous sections of land. A major oil and gas producer is the operator of the Test Well.
In conjunction with Triton's participation in the Test Well, the Corporation's board of directors has approved a $4 million increase to Triton's 2008 capital expenditures budget, which is currently expected to be funded by cash flow and existing credit facilities.
According to Michael Zuber, Triton's President & CEO, "This is a unique opportunity that is not generally available to juniors. Triton's decision to participate in this well is in line with our corporate strategy of allocating up to twenty percent of our annual capital expenditures budget to high risk, potential high impact projects. The risk is high, but a successful well here would have a dramatically positive impact on the Corporation." Dean Schultz, Triton's CFO, added, "The cost of this well is being allocated to our 2008 capital expenditures budget and will not affect our other capital expenditures plans for the remainder of 2008."
- Triton Strikes Success, Takes Stakes on Ellerslie Trend (Mar 30)
- Triton Bumps Up Daily Production, Proved Reserves in 2008 (Mar 06)
- Triton to Participate in Alberta's Deep Foothills Test Well (Nov 17)