By OGJ editors
HOUSTON, July 20 -- Geocan Energy Inc., Calgary, plans to obtain a 25% interest in the Devonian Swan Hills formation of the Beaverhill Lake Group in the Caroline area northwest of Calgary from ProspEx Resources Ltd.
Terms call for Geocan to pay 40% of the cost to drill, case, and complete the first well to earn a stake in 44 largely contiguous sections (28,160 gross acres) of land as well as a right to participate for 25% across an additional 44-section area of mutual interest below the top of the Beaverhill Lake Group.
The well, 6 miles northeast of the prolific Caroline Beaverhill Lake, will be spudded in late July or August. ProspEx will operate the well, expected to take 60 days to drill to a vertical depth of 3,500 m.
Geocan's share of well costs will be $1.7 million. The well targets the Stage 1 Swan Hills reef-rimmed margin.
The prospect is covered by about 100 sq miles of 3D seismic within which a porosity anomaly at the Swan Hills Stage 1 reef-rimmed margin has been interpreted. Porosity enhancement due to dolomitization is essential to provide the high deliverability anticipated from this reservoir.
