Passport Energy Ltd. Announces Successful Drill and Case of its First Operated Horizontal Bakken Oil Well in the Hardy Area of SE Saskatchewan
Passport Energy Ltd. (PPO - TSX Venture), ("Passport" or the "Company") is pleased to announce that, in conjunction with its partner American Eagle Energy Corporation ("American Eagle"), it has successfully completed drilling and casing its first operated horizontal Bakken oil well, PASSPORT MINTON HZ 1C11-32-3A-16-33-3-21W2M ("1C11-32 well"), in the Hardy South property of Southeast Saskatchewan. The well was drilled to a total measured depth of approximately 4,103 meters with a lateral section of approximately 1,874 meters in the Bakken Formation.
A 32-stage fracture stimulation program is planned for the well, and completion operations have commenced. The Company expects to place the well on production immediately following its completion and is expected to announce results sometime before the end September.
The 1C11-32 well represents the first of a 2-well commitment program on the previously announced farm-in agreement with a large, independent, Canadian oil and gas producer, which encompasses 34 contiguous sections of land.
The agreement calls for Passport, as the operator, along with its 50% partner, American Eagle, to fund the drilling of 2 horizontal Bakken commitment wells to earn 100% (50% net Passport) in the spacing unit until payout of the wells (subject to a convertible gross overriding royalty) and a 65% (32.5% net Passport) working interest after payout of the wells and 10 sections of land.
The second horizontal commitment well is scheduled to spud before the end of August, surface conditions permitting. Following the 2 commitment wells, the companies have the option to drill 5 additional wells under the same terms and conditions to earn the 34-section block.
The Company is a junior natural resource exploration company focused on the acquisition, exploration, and development of economically viable natural resources, with a focus on Bakken oil projects.
The Company trades on the TSX Venture Exchange under the trading symbol "PPO".
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
For more information, please refer to the Company's public documents on SEDAR (www.sedar.com).
For further information contact:
Chairman, President, & CEO
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