Brixton Energy to farm-in to Sturgeon Lake property
2012-08-27 09:29 ET - News Release
Mr. Matthew Dodwell reports
BRIXTON ENERGY EXPANDS LAND BASE IN ALBERTA
Brixton Energy Corp. has signed a letter of intent to farm in with an experienced, and successful private oil and gas junior on its (14,400 acres) 22.4 sections of high oil production property in the Sturgeon Lake area. The owner's recent 3-D has been interpreted and two zones (Leduc and Montney) have been identified throughout the property. Massive initial reserves in place and multiple drill targets have been identified on the property.
Brixton will pay 100 per cent of the cost to drill and complete one well per section, and will receive a minimum 85 per cent of the generated revenue till payback. After this point the deal reverts to a 50/50 split on revenue. Production from the Leduc formation in the area has the potential to be as high as 1,000 barrels a day initially per well.
Brixton believes this joint venture will be an exciting and productive project that will bring shareholder value and security for the company, for years to come. Management is working diligently to finalize the contract and technical reports will be readily made available upon signing of the farm-in agreement.
Matthew Dodwell, vice-president of corporate development, states: "This is an excellent project for Brixton to participate in. After seeing the physical data that was presented to us in Calgary, we were soon to realize that we were about to embark on a journey with some of the industries' proven exploration leaders. It makes us feel very confident to be working with a private group that carries a 100-per-cent drilling success rate. We are thankful to have finally structured a deal where we have the expertise and confidence to move the company forward in rapid succession. This is a proven area of Alberta with substantial infrastructure in a fully serviced area. We also like the fact that drilling and completing these Leduc formations cost roughly 1.5 to two million dollars to drill and complete. Management will now concentrate on securing the funding for the first of many wells to be drilled