Marquee Energy Ltd. has entered into an agreement with Paramount Resources Ltd. to acquire from Paramount (the "Acquisition") certain low decline, operated, producing assets (the "Assets") contiguous with the Company's operations at Michichi. The Assets are estimated by Marquee's management to have annualized 800 boe/d of production and include 120 net sections of land with 50 net sections of oil prone Mannville/Banff rights, a gas processing facility with 20mmcf/d capacity, and extensive gas gathering infrastructure covering four townships of land.
The Assets are immediately offsetting Marquee's Michichi lands and production, and are adjacent to the Company's most recent Banff oil producer. This well has been on production since December 16, 2013 and averaged over 230 boe/d (80% oil and liquids) during the month of January 2014. On the Acquisition lands, Marquee has identified more than 20 unbooked near term horizontal drilling locations for Mannville and Banff oil potential in close proximity to this well.