Nov 09 - BNP Resources Inc. Announces Farmout/Joint Venture in key Jensen Property

Source Company Web Site
Company BNP Resources Inc 
Tags Deals, Upstream Activities
Date November 26, 2009

BNP Resources Inc. is pleased to announce that it has successfully concluded an agreement with a private Alberta company ("Privco") for the development of BNP's key Jensen property. Privco must recomplete the 16-5-3-20 discovery well and complete the 5-4-3-20 well in the Upper Madison, then equip and tie-in the 5-4 well to the 16-5 battery-all at its sole cost and expense-in order to earn a 50% interest in the two relevant quarter-sections. For greater clarity, both operations must be completed in order for Privco to earn. Privco will have rolling options to earn 50% in the remaining quarter-sections on a quarter-section basis by drilling, completing or recompleting, equipping and tie-in of additional wells. Where there is equipment on site or where a well has already been tied-in to the 16-5 battery, Privco will equalize and reimburse BNP for 50% of such equipment and pipelining costs. "This agreement is exactly what BNP was looking for at Jensen," says Mr. Gregory Bilcox, President and CEO. "An engineering-oriented company that understands and can work with this light oil dolomite reservoir. We look forward to working with our new partner in developing the Jensen pool."

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