Projects » Breton / Pembina

Breton/Pembina, Alberta

On October 27, 2006, Blackdog entered into a farm-in agreement with a Private Company, “Privco” to participate in the drilling of a multi-zone exploration gas well in the Breton/Pembina area approximately 80 km southwest of Edmonton, Alberta near the village of Warburg, Alberta.

Under the terms of the farm-in agreement, Blackdog would pay 25% of all costs to completion or abandonment to earn 15% interest subject to a 10% GORR (Gross Overriding Royalty) in the zones of the section of land that the farm-in agreement covers. In addition, Blackdog would earn a 15% interest not subject to a GORR in the AMI (area of mutual Interest) that both parties agreed to that could include additional land and drilling opportunities.

The well was successfully drilled and then cased on November 8, 2006. The well tested at gas rates of 1.0 Million Cubic Feet per Day (“MMCFPD”) with associated liquids of 25 Barrels of Oil per Day (“BOPD”). The well commenced production on October 9, 2007 and is anticipated to initially flow at 1.0 MMcf/day and 30 boepd of liquids.

Blackdog and its partners purchased an additional section of land within the AMI during the March land sale and expect to drill another well during 2008.