Chevron/BP Farm-in Lands
Chevron Canada and BP Canada Resources ("Chevron/BP") have a concession agreement with the Inuvaluit Land Corporation and own Exploration Licence #427 in the Mackenzie Delta region, which comprises in total 339,500 hectares. Chevron/BP drilled three successful wells known as Langley, Ellice and Olivier on these lands between 2003 and 2005. Paramount Resources Limited ("Paramount") entered into the Farm-in agreement with Chevron/BP in the fall of 2006 and MGM Energy assumed the obligations under this agreement on Spinout from Paramount. Pursuant to this Farm-in, MGM Energy has agreed to drill up to 11 wells in total, to spend $50 million on seismic data and to assume certain other costs. MGM Energy drilled two wells in the winter of 2006/07 and three wells in winter 2007/08. Of the five wells drilled, four were dry and one, Langley E-07, was a natural gas discovery. As a result of these five wells, MGM Energy earned a 32% interest in the Farm-in lands plus any discoveries from the drilling program, but has not earned any interest in the three existing discoveries at Langley, Ellice and Olivier. An additional 3% working interest in the Farm-in Properties will be earned for each well drilled in the 2008/09 and 2009/10 winter drilling seasons, provided a minimum of three wells is drilled in the 2008/09 winter drilling season, to a maximum working interest of 50%. Upon drilling three wells in each of the 2008/09 and 2009/10 winter drilling seasons, MGM Energy will also earn a 50% interest in the previous discoveries. The Corporation drilled three wells on the Farm-in Properties during the 2008/09 winter drilling season and has earned a 41% interest in the Farm-in Properties. The first well drilled during the 2008/09 winter drilling program, Ellice J-27, was a successful natural gas well. The second well, North Ellice J-17, encountered poor quality reservoir sections and no hydrocarbons were present. The third well, Ellice A-25 did not encounter commercial quantities of hydrocarbons and was to be abandoned.
This from the web site. Just need a pipeline to make things get exciting.
Cheers,
JR.