Michigan pinnacle reef joint venture planned

Petrolympic Ltd., Toronto, plans to form a joint venture with Energex Petroleum Inc., Windsor, Ont.,  to acquire 50% indirect working interest in Energex’s Michigan pinnacle reef properties. Energex is working towards a public listing in Toronto.
May 24, 2012

Petrolympic Ltd., Toronto, plans to form a joint venture with Energex Petroleum Inc., Windsor, Ont., to acquire 50% indirect working interest in Energex’s Michigan pinnacle reef properties. Energex is working towards a public listing in Toronto.

Petrolympic will acquire the interest in return for funding development of the properties known as Addison 12-5n-11e and Bruce fields, DeWald 2-12, and Big Hand.

The companies will jointly determine uses for funds to be advanced by Petrolympic for operations such as preparation of unitization application, reworking four shut-in wells, and studying secondary recovery at Addison; preparing a natural gas storage feasibility study; and evaluating the potential for further production at Big Hand, DeWald 2-12, and Bruce fields.

Big Hand has one shut-in well and a second well with a 12.5% gross overriding royalty. There are several operators on the reef. Historical technical reports indicate a potential for secondary recovery.

Petrolympic will also have a right of first refusal for 1 year to earn working interests in Energex properties in Ontario.

About the Author

Alan Petzet

Chief Editor Exploration

Alan Petzet is Chief Editor-Exploration of Oil & Gas Journal in Houston. He is editor of the Weekly E&D Newsletter, emailed to OGJ subscribers, and a regular contributor to the OGJ Online subscriber website.

Petzet joined OGJ in 1981 after 13 years in the Tulsa World business-oil department. He was named OGJ Exploration Editor in 1990. A native of Tulsa, he has a BA in journalism from the University of Tulsa.

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