Petrobank to step up Bakken drilling in 2008

Petrobank Energy & Resources Ltd., Calgary, plans to drill 110 horizontal wells next year in the Bakken play in southeast Saskatchewan.

By OGJ editors
HOUSTON, Dec. 3 -- Petrobank Energy & Resources Ltd., Calgary, plans to drill 110 horizontal wells next year in the Bakken play in southeast Saskatchewan.

Petrobank expects to operate seven rigs within the Bakken play—an area in which it is expected to have a drilling inventory of 600 (565 net) well locations, based on a future well density of four wells per prospective section.

Drilling will take place after its acquisition of Peerless Energy Inc. for $334 million, including debt. As part of the deal, Petrobank is expected to issue about 4 million common shares. The transaction could lead to combined production from the Bakken play to as much as 7,900 b/d of oil.

Peerless currently is producing about 4,250 boe/d of light oil—primarily from the Bakken play—and natural gas from Alberta and British Columbia. Peerless also has more than 100,000 net acres (156 sections) of undeveloped land.

Reserves for the acquired properties will be evaluated by Petrobank's independent reserves evaluator at yearend.

The deal is subject to approvals, including that of Peerless shareholders.

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