Westcore Energy Ltd. entered a farm-in agreement with Eros Resources Corp. to complete a three-well program on Westcore's Flaxcombe oil field in Saskatchewan, Canada, a Feb. 7 press release said.
Eros will fully fund the cost to drill, complete and bring the vertical wells on production in exchange for a 90% interest in the wells before payout and a 50% interest after payout. Eros will also retain right of first refusal on two subsequent drill programs under the same terms.
From four currently producing wells, Flaxcombe Field produces about 85 barrels of oil per day. There are standing wellbores and shut-in production that can be reactivated.
The three-well program is designed to drill offset locations to Westcore’s four producing wells at Flaxcombe, which is west of Kindersley, Saskatchewan. Drilling should likely begin in mid-February, with all three wells producing before spring breakup, the press release said.
The field uses Westcore’s water disposal facility, oil and water hauling, and casing gas, which powers the wells and heats storage tanks, the press release said.
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