Passport Energy Ltd. ("Passport" or the "Company") is pleased to announce that it has signed a letter of intent (the "LOI") allowing it to farmin on up to two wells and associated acreage in the Hardy Bakken Field in southeastern Saskatchewan. The Company can earn a 25% interest (subject to applicable royalties) in the new wells by paying 38.5% of the drilling costs associated with each well and fulfilling other obligations. The first well must be commenced by February 1, 2011 and the second well by March 31, 2011 or such other date as may be mutually agreed. The remaining costs will be shared by two partners - American Eagle Energy Inc. and Eternal Energy Corp. - focused on Bakken oil and gas projects within the Williston Basin.
The original Hardy Bakken Field discovery was made in 2008. The discovery well was subsequently shut in because of mechanical problems. A well work over was recently completed that successfully re-established production from that well.
Management estimates that this acreage could allow between 14-28 new horizontal wells to be drilled.
"This is an important project that complements our 60% interest in 43,583.49 gross acres of leases in the Montana portion of the Alberta Bakken," said President and CEO Frank Port. "The Hardy Field Prospect is a low-risk, light oil project that has the potential to add significant production and reserve additions to Passport."
The Company Trades on the CNSX under the trading symbol "PPO".
The CNSX does not accept responsibility for the adequacy or accuracy of this news release.
For more information, please refer to the Company's engineering report available on SEDAR (
www.sedar.com).
For further information contact:
Frank Port
President, Chief Executive Officer, and Director
Tel: 604-805-9999
E-mail: fport@passportenergy.com
Website:
www.passportenergy.com
Visit Passport Energy Ltd. Website:www.passportenergy.com