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The Independent Operator will earn a 60% interest in the lease by re-entering an existing well. The Independent Operator will pay 100% of the costs to re-enter this well. Great Pacific has agreed that the Operator will have 100% interest in the re-entered well and will have a 60% interest in any additional wells. GPI will retain a gross overriding sliding scale royalty interest of 5% to 15% on the re-entered well.
Should the Independent Operator issue a notice that they intend to drill another well, GPI will have the option of participating to our 40% interest or converting our interest to a 5% to 15% gross overriding royalty.
Historically, the well subject to re-entry had produced just over 30,000 Bbls of oil over its operating period, while other similar wells in the area had produced in excess of 100,000 Bbls. Based upon it’s evaluation of nearby wells and geophysical data, the Independent Operator believes that oil is likely present in the formation that it is targeting. The historical results of these wells can not be considered indicative of what may be expected from the re-work of this well.
Our farm-in partner, an independent operator has over 40 years of experience in the oil and gas industry in Alberta.
For more information, contact Thal S. Poonian, President, at 604-940-9190, toll free 1-877-942-8765 or by email tpoonian@telus.net.
About Great Pacific International
Great Pacific International is a public company actively engaged in the exploration and development of crude oil and natural gas. GPI currently owns over 33,000 gross acres of P&NG leases (over 30,000 net acres) in the Western Canadian Sedimentary Basin. The Company’s strategy is focused on creating value for shareholders by acquiring and developing petroleum and natural gas leases primarily in western Canada. Great Pacific currently has 47,478,432 shares outstanding which are listed on the TSX Venture Exchange under the symbol GPI.
A Note Regarding Forward Looking Information
Some of the statements in this press release are forward-looking statements and are based on current expectations, assumptions, and estimates. Words and phrases such as "believes", "expect, anticipate", are intended to identify forward-looking statements. The forward-looking statements and information in this press release are based on certain key expectations and assumptions made by Great Pacific International including among other things: future capital expenditure levels; future oil and natural gas production levels; the ability to obtain financing on acceptable terms; and ability to add production and reserves through exploration, development and exploitation activities.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. There is a significant risk that actual material results will vary from projected results. No information provided in this press release should be construed as a representation or indication in any manner whatsoever of the present or future value of the Company or its common stock. More specifically, in this release the results of analogous wells can not be considered indicative of what may be expected on the company’s properties. The Company disclaims any responsibility to update forward-looking statements made herein.
Additional information regarding the Company and its business operations, including the Company’s annual reports, press releases and filings, is available on the Company’s SEDAR profile at www.sedar.com and our website at www.gpicanada.net.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.
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