Blacksteel Energy Inc. has entered into a farm-in agreement with an industry partner to participate in the drilling of horizontal wells in the Cardium oil formation in the Buck Lake area of Alberta.

The Agreement provides for the earning of a 25.0% working interest in 1280 acres of land by paying 37.5% of the cost to drill, complete and equip the first two wells. The first well will earn a 25% working interest in 320 acres of the land, and the second (Option Well) will earn the balance of the 1280 acres. All subsequent wells will be drilled with Blacksteel paying 25% of the costs for a 25% working interest in the land. Current well spacing provides for up to four wells per section in the Cardium zone in this field.

Tags: Blacksteel Energy Inc.