Petrolympic Ltd., Toronto, plans to form a joint venture with Energex Petroleum Inc., Windsor, Ont., to acquire 50% indirect working interest in Energex’s Michigan pinnacle reef properties. Energex is working towards a public listing in Toronto.
Petrolympic will acquire the interest in return for funding development of the properties known as Addison 12-5n-11e and Bruce fields, DeWald 2-12, and Big Hand.
The companies will jointly determine uses for funds to be advanced by Petrolympic for operations such as preparation of unitization application, reworking four shut-in wells, and studying secondary recovery at Addison; preparing a natural gas storage feasibility study; and evaluating the potential for further production at Big Hand, DeWald 2-12, and Bruce fields.
Big Hand has one shut-in well and a second well with a 12.5% gross overriding royalty. There are several operators on the reef. Historical technical reports indicate a potential for secondary recovery.
Petrolympic will also have a right of first refusal for 1 year to earn working interests in Energex properties in Ontario.