By the OGJ Online Staff
HOUSTON, May 3 -- Santa Catalina Mining Corp., Vancouver, and Eclipse Exploration Ltd., Calgary, have agreed to farm-into AEC Oil & Gas Ltd.'s lands in the Sneddon area in northwestern Alberta.
The area is 48 miles northwest of Grande Prairie.
Santa Catalina said the Sneddon area contains several major Kiskatinaw gas fields, including Pouce Coupe, which has recovered more than 350 bcf of gas, and Bonanza, which has produced more than 100 bcf.
Significant uphole potential exists in the Charlie Lake, Gething, and Baldonnel zones, executives said.
Santa Catalina said there is extensive infrastructure in the area, and added the spot gas market is fetching more than $7 (Can.)/Mcf.
The Sneddon prospect encompasses two sections, covering 1,280 acres. Santa Catalina will participate in the drilling of a deep test well. After recovery of costs, the company will retain a 50% working interest in the drilled section. Following an evaluation period, the company has an option to participate in drilling the offsetting section of land.
The primary objective of the Sneddon project is to evaluate the Kiskatinaw sand (Mississippian age) trapped against the Farmington fault system at 7,900 ft depth. The prospect has been defined with a 3D seismic grid and offsetting well control.
The first well will be drilled immediately after spring breakup. Eclipse will operate the project.
Interests in the farm-in were not disclosed.
