Pincher Creek Info from the MD&A.Pincher Creek:
In March 2008, Goldnev entered into an Offer to Purchase Agreement with Mercury Oil & Gas Ltd. To acquire oil and gas interests in 9,600 acres (or 15 sections) of land in the Pincher Creek area in southwestern Alberta.
The working interests to be acquired range from 7.5% to 25% and involve the possible re-completion of three oil/gas wells, the drilling of deep, high-impact natural gas well in the
Rundle formation and the drilling and completing of up to six oil wells into the Brown and Cadomin zones.
In September of 2008, the first re-completion by the present parties to a joint venture was initiated and resulted in the discovery of light condensate oil with associated natural gas in the Upper Brown and Lower Cretaceous formations. Recently, additional testing of the Brown formation has confirmed the potential for commercial oil production.
This discovery constitutes a new oil play in the Pincher Creek area and represents a near-term oil production and the opportunity for additional adjacent drilling locations for the Company.
The Pincher Creek acquisition is expected to be completed once the cease trade order has been revoked by the Alberta Securities Commission and the Company has been re-instated for trading by the TSX Venture Exchange.