AMG Oil Ltd. announces funding, partner in Canterbury Basin project

AMG Oil Ltd., Calgary, said Friday it's teaming up with Orion Exploration Ltd., a wholly owned subsidiary of the New Zealand-based energy distributor and technology investment company Orion Group, to gain strategic expertise and additional funding for its Canterbury basin project.


AMG Oil Ltd., Calgary, said Friday it's teaming up with Orion Exploration Ltd., a wholly owned subsidiary of the New Zealand-based energy distributor and technology investment company Orion Group, to gain strategic expertise and additional funding for its Canterbury basin project.

Orion Exploration will earn a 10% interest in the Canterbury basin project by reimbursing AMG for a portion of past exploration costs, and by contributing 20% to the cost of drilling both the Ealing-1 and Arcadia-1 wells.

Drilling of the Ealing-1 well is set to begin Oct. 16, and to be immediately followed by the Arcadia-1 well (OGJ Online, Sept. 25, 2000). Both Ealing-1 and Arcadia-1 exploration wells are expected to take 3 weeks to drill to their target depths of 6,000 ft.

Following completion of funding obligations by Orion and AMG on the Ealing-1 and Arcadia-1 wells, AMG Oil Ltd. will hold a 70% interest in the area. Indo-Pacific Energy Ltd. will hold 20%.

The Orion Group is also a partner with Denver-based Westech Energy in exploring New Zealand's onshore East Coast basin, where the Westech-Orion joint venture has made three gas discoveries.

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