Scandinavian Oil-Gas Magazine
http://www.scandoil.com/moxie-bm2/news/panterra-resource-enters-joint-venture-agreement.shtmlPanTerra Resource enters joint venture agreement
PanTerra Resource Corp. has entered into a joint venture agreement to develop its central Alberta oil assets. PanTerra's joint venture partner will pay one
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PanTerra Resource Corp. has entered into a joint venture agreement to develop its central Alberta oil assets. PanTerra's joint venture partner will pay one hundred percent of the cost to drill and complete and equip each well drilled at the Company's Tomahawk property located west of Edmonton. For doing so, the joint venture partner will earn a straight up 55% of PanTerra's Pre-Farmout interest in the spacing unit for each well drilled (based upon an initial 40 acre well spacing), while PanTerra will retain 45% of its Pre-Farmout interest.
Upon repayment of a premium associated with the joint venture partner's cost of capital, payable out of the joint venture partner's 55% share of net production revenue from the wells drilled, PanTerra's interest will increase to 50% of its Pre-Farmout interest in each spacing unit drilled. The initial phase of the joint venture will consist of a three well program which will be the first of multiple phases planned for this general area which could see the drilling of in excess of fifteen wells. PanTerra will continue as the 'Operator' through all phases of the project.
This program is expected to increase PanTerra's monthly revenue as time progresses and as more wells are drilled, all without any capital investment on PanTerra's part.
