Bayshore Petroleum Corp. has entered into a Letter of Intent (the "LOI") with a second private oil & gas company operating in Meota, Saskatchewan, area. Under the LOI, Bayshore can earn up to a 50% working interest in 1.5 sections (960 acres) of oil & gas lease acreage.

There are currently six vertical oil wells drilled and completed in the Upper Mannville formation and most wells encountered more than 6 meters of heavy oil bearing formation. Under the LOI, Bayshore will earn the working interest by drilling up to two horizontal wells and developing the property to supply heavy oil to the previously announced upgrader that Bayshore intends to construct in Meota area. Horizontal well production on lands adjacent to the lands that Bayshore may earn into is as high as 150 barrels oil per day.

The LOI contemplates the execution of a formal farm-in and earning agreement by March 1, 2013 following the finalization of the terms and conditions. Bayshore will have until July 31, 2013 to finish drilling of the two earning horizontal wells.

Tags: Bayshore Petroleum Corp.