Tourmaline neighbour trades below cash, news today 2013-10-22 13:04 ET - News Release
Mr. Anthony Roodenburg reports
GREENCASTLE ALBERTA OIL LEASE EXTENSION APPROVED
Alberta's Department of Energy has extended the term on the 640-acre petroleum and natural gas (P&NG) lease at Spirit River, northwest Alberta, held 50/50 by Greencastle Resources Ltd. and its partner, Softrock Minerals Ltd., to June 11, 2015.
Over the past few weeks, Tourmaline Oil Corp., through its operating subsidiary Exshaw Oil Corp., has applied to the Alberta government for altered spacing units that will permit horizontal well completions in the Charlie Lake formation in the sections offsetting to the south and southwest of Greencastle's lease.
Interest has been steadily increasing in the area. At the last Alberta government sale, a 640-acre parcel of similar P&NG rights directly offsetting Greencastle's lease to the north sold for over $900,000, while another parcel of one-half section at the same sale directly adjoining to the southeast went for in excess of $200,000.
Commenting on these developments, Anthony Roodenburg, Greencastle chief executive officer, stated: "Activity and land prices have picked up smartly in the area and we are in discussions with several parties regarding development of this section. Our land is now essentially surrounded by new production or recently purchased landholdings. Our discussions are focused on bringing in a partner to drill, allowing Greencastle to hold an overriding royalty similar to the revenue model we have at Primate in Saskatchewan."
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