Delphi Energy Corp. has entered into a farm-in agreement to earn up to a 75 percent working interest in 35 sections of Montney and Nordegg petroleum and natural gas (PNG) rights in its core area of Bigstone, Alberta.

The farm-in contemplates Delphi drilling one vertical test well at Bigstone South, with an option to drill and complete a horizontal well in the Montney formation earning a 75 percent working interest in up to 32.5 gross sections of land containing Nordegg and Montney rights. The test well at Bigstone South is scheduled to commence drilling during the second quarter of 2013.

Delphi will also earn an additional 2.5 sections (1.875 net) of Montney rights at Bigstone East. The Company will farm-in on the Farmor's working interest by drilling four gross wells contemplated to be drilled in 2013 and 2014 as part of the Company's ongoing drilling program.

Tags: Delphi Energy