May 11 - Border Petroleum Announces Joint Venture With the Loon River Cree Nation

Source Press Release
Company Border Petroleum Limited 
Tags Deals, Upstream Activities
Date May 10, 2011

Border Petroleum Corp. is pleased to announce it has entered into a new joint venture (the "Joint Venture") with the wholly-owned energy company of the Loon River Cree Nation (the "Nation"). Under the terms of the Joint Venture, Border will have the opportunity to work directly with the Nation to develop up to 17,120 acres (26.75 sections) of the Slave Point formation in the Red Earth area of north central Alberta.

Arthur Noskey, Chief of the Loon River Cree Nation, stated, "We are excited to have entered into this new Joint Venture with Border which provides the opportunity for the Nation to participate, and have ownership, in the development of our own resources. As Border is already utilizing Nation contractors and services in its operations in Red Earth, we look forward to the additional economic development this Joint Venture will bring to our Nation members."

Kelly Kimbley, Border's President and CEO, stated, "Border is honoured to partner with the Loon River Cree Nation in the development of their oil resources. The new Joint Venture gives Border the opportunity to work directly with the Nation to expand its core area and increase its re-entry and horizontal well portfolio in the Slave Point light oil resource play at Red Earth. Border has made aboriginal partnerships an integral part of its growth strategy. We intend to continue to develop our partnership with the Loon River Cree Nation as well as pursue similar partnerships as Border moves forward."

Summary of Joint Venture

The Joint Venture provides for Border to conduct earning operations in the form of re-entries into existing wellbores and new drills on up to 26.75 sections of the Nation's lands subject to the continued Indian Oil and Gas Canada and Nation lease approval process. Border will pay 100% of the costs of each earning operation and receive a 100% payout account for that well subject to an industry standard gross overriding royalty ("GORR") in favour of the Nation. Further, for having conducted each earning operation under the applicable lease, Border will have earned a 90% working interest in the balance of the lease for conducting horizontal wells and a 50% working interest for conducting re-entries. With respect to subsequent re-entries or new drills into earned Slave Point rights, the Nation will have the option to participate straight up as to its working interest share in each well or receive a GORR.

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