BWD JVVER is next. big companies dont jump in on JV's for nothing....they know the Bakken potential...
GL!!!
Bowood Announces Alberta Bakken Strategic Joint Venture and Farmout With Legacy Oil + Gas Inc.
Tuesday, December 07, 2010
CALGARY, ALBERTA-- (Marketwire - Dec. 7, 2010) - Bowood Energy Inc. (TSX VENTURE:BWD) ("Bowood" or the "Company") is pleased to announce that it has entered into a strategic joint venture and farmout arrangement (the "Joint Venture") with Legacy Oil + Gas Inc. ("Legacy"), on Bowood's extensive Alberta Bakken acreage, consisting of approximately 183 sections (117,000 acres) of lands (the "Lands") located in southern Alberta.
Under the terms of the Joint Venture, Legacy will, through a combination of land equalization and drilling, have the ability to earn 50 percent of Bowood's entire interest in the Alberta Bakken fairway lands. Initially, Legacy will equalize into a portion of the Lands by providing a cash payment to Bowood of $8 million to purchase a 50 percent working interest in 33,280 acres (52 sections) of Lands (the "Acquired Lands"). The Acquired Lands consist of a mix of Crown and Freehold Lands which are not located on the Blood Tribe Reserve (the "Blood Tribe Lands").
On the remaining 131 gross sections of land (the "Farmout Lands"), including the 94.75 gross sections of Blood Tribe Lands, Legacy initially will drill two (2) horizontal Test Wells which will target the lower Banff, Exshaw/Bakken and Big Valley formations. The first Test Well will spud prior to March 31, 2011 and the second Test Well will be spud prior to August 31, 2011. One of the Test Wells will be located on the Blood Tribe Lands and the other will be located on the remaining non-Blood Lands. With each Test Well, Legacy will be responsible for 80 percent of the drilling and completions costs of such Test Well and and shall earn a 50 percent working interest in 8 sections of the Farmout Lands. Following the drilling of the two Test Wells, Legacy will have the right to continue earning in the Farmout Lands on a rolling option basis.