First Sahara Energy Inc. has signed a Letter of Intent (LOI) with Liberty Oil & Gas Ltd.(Liberty), to farm in on Liberty's Ordovician aged Black River oil and gas prospect at Dover East near Chatham in southwestern Ontario. The LOI is subject to a number of conditions, including successful financing, and is expected to lead to a formal farm-in agreement in early 2014.
Under the terms of the LOI, First Sahara will pay for a small 3D seismic program and the drilling of two development wells to earn a 50% working interest in the eastern extension of the Dover East Field. The 3D seismic program will overlap an existing 3D in the northwest corner of the farm-in area. The overlap will ensure good seismic coverage in order to provide optimal drilling locations.