VANCOUVER, April 5 /CNW/ - Great Pacific International Inc. ("GPI")(TSX.V: GPI) is pleased to announce that the company has received atrade copy of a 3-D Seismic shoot from Penn West Exploration ("PennWest"). Penn West has now been registered as a 50% working interest inall petroleum and natural gas rights on the Property located at Section31, Township 90, Range 12, West of the Fifth Meridian (see pressreleases of January 11 and February 4, 2011) and is designated as theoperator of the Property. GPI's technical team is presently reviewingthe 3D seismic Data.
As per the Agreement with Penn West, Penn West, at its sole discretion,shall have the right to serve an Independent Operations Notice ("ION")for the drilling of a joint well pursuant to the terms of the OperatingProcedure. If Penn West issues an ION, it shall be obligated topresent a technical presentation to Great Pacific prior to the electiondeadline of the said ION. We anticipate that Penn West will determinehorizontal drilling targets in the near future. All such decisions arestrictly within the discreation of Penn West. To participate in thejoint well GPI will be required to fund 50% of the drilling costs.
If GPI elects not to participate in the drilling of a joint well, GPIshall assign its 50% working interest to Penn West in the Joint Landsand Penn West shall reserve to GPI a non-convertible sliding scaleroyalty of 5%-10% on oil and 10% on gas subject to Crown equivalentdeductions and paid on 50% of production. The royalty shall be subjectto the terms and provisions of the Farmout and Royalty Procedure withinthe Agreement.
The Property is located in the Red Earth area (see map at https://www.gpicanada.net/operation) where GPI has 5,200 gross acres (4,520 net acres) of oil and gasleases. This area is known to produce crude oil from the Slave Point,Keg River, and Granite Wash formations.
Thal S. Poonian, president of GPI commented that: "We are lookingforward to working with Penn West on the development of this propertyand hope to proceed with drilling in the near future. Penn West, inits March 17, 2011 MD&A, reports a successful drilling completion rateof over 99% for the year 2010."
The Company is currently assessing its available options for raising thecapital required to move forward with anticipated drilling with PennWest.
About Great Pacific International
Great Pacific International is a public company actively engaged in theexploration, and development of natural gas and crude oil. Thecompany's holdings are currently over 32,000 gross acres (over 30,000net acres) in Alberta, Canada. The company's strategy is focused oncreating value for shareholders by acquiring and developing petroleumand natural gas leases primarily in western Canada. Great Pacific'sshares are listed on the TSX Venture Exchange under the symbol GPI.
On behalf of the Board,
"Thal S. Poonian"
| Thal S. Poonian |
|
|
|
|
President
|
Neither TSX Venture Exchange nor its Regulation Service Provided (asthat term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.