Eastern Saskatchewan shale gas hunt starting
Hunt Oil Co., Dallas, and Nordic Oil & Gas Ltd., Winnipeg, Man., signed a strategic development agreement regarding gas exploration in east-central Saskatchewan.
By OGJ editors
HOUSTON, Aug. 11 -- Hunt Oil Co., Dallas, and Nordic Oil & Gas Ltd., Winnipeg, Man., signed a strategic development agreement regarding gas exploration in east-central Saskatchewan.
Nordic will have the opportunity to earn an interest in 153,600 acres of Hunt-owned land at Preeceville, 130 miles northeast of Regina, Sask. The ensuing exploration work on the lands will result in Hunt having the option to participate on a 50-50 go-forward basis with Nordic, or allow Nordic to retain a 100% interest in the land with Hunt earning a gross overriding royalty.
Hunt’s acreage lies a few miles southeast of lands held by Nordic, where survey work has begun for a five-well program. Drilling is to start in September 2009. Nordic has an 80% interest in 137,780 acres.
The area has no oil or gas production. Nordic has previously said that its lands, on the northeast flank of the Western Canada Sedimentary Basin, have gas and oil potential in at least 10 formations from the Second White Specs to the Winnipegosis sand.