OXY will retain working interest; help assess options…
The Sun Times, on Friday evening, recevied a press release that had been issued by Primary Petroleum;
CALGARY, ALBERTA — Primary Petroleum Corporation advises that its JV Partner has informed the Company that it does not intend to enter into the Phase II program under the Sales and JV Agreement dated October 17, 2011. The JV Partner will retain its earned working interest in the Pondera-Teton leasehold and continue to work with Primary to assess options to best realize future value in the prospect area.
Primary will continue to further evaluate the data generated by the Phase I program to better determine a go-forward exploration program that will continue to de-risk the multi-formation play.
Primary has currently engaged Image Interpretation Technologies (“IIT”) to acquire a high-resolution aeromagnetic and gravity survey across the northern half of the project area. The objectives of this survey are:
- To establish the tectonic framework over the northern half of our land position.
- Assess the potential influence of deep-seated structures on prospective formations.
- Create a series of templates over the known oil and gas fields in the area. Pondera Field, which is adjacent to Primary”s land holdings to the east, and Gypsy Basin Field, which our leases surround, have together produced over 30 million barrels of Sunburst and Madison oil.
- Integrate the data collected from the survey with existing 2D and proprietary 3D-seismic data.
- Pending results, a second aeromagnetic survey may be acquired over the southern half of our land position.
We anticipate that interpretation of the aeromagnetic survey will be completed by the end of April 2013 and will enable Primary to better assess its options with Industry to realize the future potential of this very large and contiguous land position in Pondera and Teton Counties in NW Montana (600 gross and 512 net sections) as the Phase I program assessed less than 20% of the JV Lands.
The Company is continuing with its ongoing assessment of the 3rd well from the Phase I horizontal completion program and will move forward with assessing the vertical Madison well that was initially tested earlier in the Phase I program.
As reported in our most recent quarterly financials ending November 30, 2012, Primary has a working capital surplus of approximately Cdn $16.5 million with no debt. Our Lands are secured well into the future and of the 384,000 gross and 328,000 net acres under the Joint Venture only 36,000 gross and 22,000 net acres require further assessment prior to 2017. These facts provides the Company with several options to create future shareholder value from our current assets and balance sheet.