MegaWest Energy Corp., Calgary, farmed out its working interest in the 14,500-acre Teton prospect in Choteau County northeast of Great Falls, Mont..
By OGJ editors
HOUSTON, May 13 – MegaWest Energy Corp., Calgary, farmed out its working interest in the 14,500-acre Teton prospect in Choteau County northeast of Great Falls, Mont..
The undisclosed farmee will pay all costs to casing point in as many as five wells to earn 75% of MegaWest’s working interest in 2 sq miles/well drilled. The first well is to spud by Aug. 1, 2010, targeting a heavy oil reservoir.
MegaWest surrenedered leases at Loma, a 6,000-acre light oil exploratory property northeast of Teton, after conducting and evaluating several miles of 2D seismic and finding the lands to be nonprospective.
MegaWest agreed to sell its 25% carried working interest in a Musselshell County property for $5,000 after a farmee drilled a dry hole in January 2010.
Activity is on hold on the company's Devils Basin property northwest of Billings pending the resolution of a legal action by conservation groups who allege that the Montana Bureau of Land Management did not complete an adequate environmental assessment before granting certain leases.
The 10-year term of 760 acres of federal leases owned by the company is placed on hold until the legal action has been resolved. Freehold leases have several years of term remaining.