Carmen Energy Inc. report that the Corporation, with Shorthorn Exploration Ltd. (Shorthorn) has spud a horizontal Glauconitic light oil development well in the Viking Kinsella, Alberta area.

The Corporation plans to land the well bore at an approximate true vertical depth of 750 meters in the Glauconitic zone and drill out a horizontal leg 900 meters.

Under the terms of the farmin agreement, Carmen is paying 100% of the costs to drill to the contract depth, abandonment, capping or completion, equipping and tie-in to earn a 60% working interest in the well and half-section of land the well is located on. In the event the well is a gas well, Carmen will earn the entire section the well is located on.

Provided that the Letter of Intent announced by Carmen on September 19, 2011 to acquire Shorthorn is transacted, the farmin agreement shall be superseded by virtue of Carmen's acquisition of Shorthorn.

Tags: Carmen Energy Inc.