RE: NewsSome additional information about drilling plans from Nickle's Daily Oil Bulletin:
Philip Loudon, president and chief executive officer of Veteran Resources Inc., told the Bulletin Saskatchewan offers smaller companies the right combination of access to land, infrastructure, and low risk exploration and development opportunities.
Veteran acquired 49.5 sections at the sale, as it tries to restructure and open a new core area in the province. Loudon was reluctant to disclose the location or price paid for the parcels, citing competitive reasons.
Although he agreed competition is heating up, “Saskatchewan still has large open tracts to establish a core area for a small company like us,” Loudon said. “It’s much easier to get in the market and get drilling very quickly. Saskatchewan gives you the ability to quickly convert capital into cash flow ... you can’t do that in northeast British Columbia or Alberta.”
Veteran plans to drill up to four wells by year-end and shoot seismic. Depending on the success of those wells, Loudon said Veteran would drill up to 15 additional holes in 2004 chasing lower risk shallow gas.
Saskatchewan took in $36.7 MM at the auction on 211,126 hectares at average of $174.17 per hectare.