Primary Petroleum Completes Sale and Joint Venture With Major U.S. Industry Partner on Its Southern Alberta Basin Bakken Fair...
20 October 2011 - 7:33AM
Marketwired
Primary Petroleum Corporation (TSX VENTURE:PIE)(OTCQX:PETEF)
("Primary" or the "Company") is pleased to announce that its wholly
owned U.S subsidiary; Primary Petroleum Company LLC, has signed and
closed a Sale and Joint Venture Agreement with a major U.S. based
Industry Partner ("JV Partner") that will pay $48.5 million to
acquire a 32.5% working interest in Primary's 291,000 net acres in
Western Montana.
The JV Partner has paid $7.5 million in cash and fully commit to
fund a $41 million initial exploration program, consisting of
shooting 3D seismic and drilling vertical and horizontal wells.
Primary will retain operatorship during the 3D seismic and vertical
drilling program and the JV Partner will become operator of the
horizontal program. The initial exploration program is expected to
be completed by the end of 2012. The JV Partner will retain an
option for 60 days of completion of the initial program to commit a
further $41 million on a similar secondary exploration program to
acquire an additional 17.5% working interest. If the option is
exercised, the JV Partner will retain operatorship. The effective
date of the transaction is July 1st, 2011.
"Primary looks forward to working with a strong industry partner
to delineate and prove up our acreage position in the Southern
Alberta Bakken Basin in NW Montana," states Mike Marrandino,
President & CEO. "The Basin continues to be de-risked by
industry on both sides of the border and Primary is enthusiastic
about the potential of confirming economic hydrocarbons over our
lands. The next couple of years will be very exciting for the
Company as we will be able to fulfill its business objectives and
evaluate our acreage with the added technical expertise and
financial backing of a strong joint venture partner."
About Primary Petroleum Corporation - Primary is a junior oil
and gas company engaged in exploration and development activities
in Montana and Alberta and currently holds substantial land
positions in two unconventional tight oil plays in North America.
The Company's mandate is to continue to acquire strategic land
positions of merit in the Sedimentary Basins of the Western United
States and Canada and seek out qualified industry partners to
exploit and develop our acreage. To learn more about us, please
visit our website at www.primarypetroleum.com.
FORWARD-LOOKING STATEMENTS DISCLAIMER: Certain statements in
this document may contain "forward-looking statements" or
"forward-looking information" within the meaning of applicable
securities legislation. Such forward-looking statements or
information include, without limitation, forecasts, estimates,
expectations and objectives for future operations that are subject
to a number of assumptions, risks and uncertainties, many of which
are beyond the control of the Company. The Company does not assume
the obligation to update any forward-looking statement, except as
required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Primary Petroleum Corporation Mike Marrandino
President & CEO (403) 262-3132 (403) 262-3175
(FAX)mike@primarypetroleum.comwww.primarypetroleum.com
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