Mera Petroleums to invest further in Saskatchewan

Canadian company Mera Petroleums Inc. plans to invest up to $4 million (Can.) over the next few months on exploration and drilling work in Saskatchewan. The spending could bring its total investment in the area to $8 million.

April 19, 2001

By the OGJ Online Staff

HOUSTON, Apr. 19 -- Canadian company Mera Petroleums Inc. plans to invest up to $4 million (Can.) over the next few months on exploration and drilling work in Saskatchewan.

The spending could bring its total investment in the area to $8 million.

Mera has begun a six-well drilling program with the drilling and casing of two wells in the Leader area 95 km northeast of Medicine Hat. Mera is testing the deeper well.

It plans to spud and test one deep and three more shallow wells within the next few weeks. This summer, Mera plans a 24-well shallow gas program in the area.

The company said it farmed out another 24-well shallow gas program close to Burstall, Sask. It retains a 20% carried interest.

Mera Pres. and CEO Robert McLeay said, "Shallow gas has become more attractive with rising prices, and deeper exploration in Saskatchewan more lucrative since the introduction of the province's royalty incentive program."

Due to the provincial program, Mera will pay only 2.5% royalty on the first 900 MMcf of production from some wells. The usual rate is 22.5%.