GREY:CUDBF - Post by User
Comment by
green_CCZon Aug 28, 2012 1:03pm
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Post# 20269774
RE: RE: The Market
RE: RE: The Market this is not the best news for POP ... POP will only get a small part of the profit if they found oil ... the good thing is they don't risk much as POP doesn't have to pay any cost upfront , and horizontal wells are expensive ...
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 28, 2012) - Petro One Energy Corp. (TSX VENTURE:POP)(PINKSHEETS:CUDBF)(FRANKFURT:C6K1) is pleased to report that it has entered a Farmout and Royalty Agreement with a senior oil company on its 100% controlled J10 property at Bromhead, Saskatchewan. The agreement calls for the farmee to drill an earning horizontal well in the Frobisher or Midale formation by March 31, 2013. By paying 100% of the drilling and completion costs, the farmee will earn a 100% interest in the Test Well Spacing Unit to the base of the lowest formation penetrated, both before and after Payout, subject to a 10% gross overriding royalty (the "GORR") in favour of Petro One. The GORR may be converted at the option of Petro One into a 30% working interest in the initial test well within 30 days of receiving notice of Payout, and a 40% working interest in all subsequent wells after receiving notice of Payout.