Carmen Energy Inc. announces amending agreement to participation agreement
CALGARY, Feb. 23, 2012 /CNW/ - Carmen Energy Inc. (TSXV: CEI) ("Carmen" or the "Corporation") announces that due to unforeseen cost overruns associated with its Hamburg area, Alberta well (the "Well"), the Corporation, in conjunction with its partner, have amended their participation agreement, previously announced on February 2, 2012.
The revised terms of the participation agreement provide that Petrus Resources Ltd. ("Petrus") will carry one-hundred percent (100%) of the costs associated with the Well to completion, effective 12:00 am Thursday February 16, 2012 and assume operatorship of the Well. Furthermore, in the event that the partners proceed to equip and tie-in the well, Carmen will be responsible for a net ten percent (10%) of the costs, risks, obligations and liabilities associated therein.
Upon Petrus having complied with the terms and conditions of the amended participation agreement, Petrus will have earned a net one hundred percent (100%) interest in the Well and the first option well earning block reserving unto Carmen a net ten percent (10%) carried working interest following payout of a net fifty five percent (55%) of all the costs and expenses associated to the first option well that occur between 12:00 am Thursday February 16, 2012 and the point at which Carmen earns its remaining net ten percent (10%) of the Well by electing to fund ten percent (10%) of the costs to equip and tie-in the Well