Alberta Oil Sands Inc. (AOS), Calgary, has entered a farmout agreement with privately held Crescendo Resources Ltd. that will advance exploration of its Algar Lake oil sands prospect in Alberta.
To earn an initial 51% interest, Crescendo will fund, drill, core, log, and abandon at least three wells. To earn an additional 24% interest, it will fund, drill, core, log, and abandon two more wells.
Crescendo, a new company affiliated with privately held Canshale Corp., Calgary, will pay AOS $2 million to enter the agreement and has 2 year to earn its interests.
AOS now holds a 100% working interest in the 13,209-hectare prospect southwest of Fort McMurray. It says legacy core holes indicate the Cretaceous McMurray and Wabiskaw formations, which occur at depths of about 275 m, are prospective.
Only three exploratory wells have been drilled in the region around the prospect, all drilled in 1958-60.
