Mystique Energy Inc (C-MYS) - News Release
Mystique Energy farms-in Lochend/Wildcat wells
2005-02-24 10:23 ET - News Release
Shares issued 36,023,889
MYS Close 2005-02-23 C$ 0.92
Mr. Victor Luhowy reports
MYSTIQUE ENERGY, INC. ENTERS INTO A 124 SECTION FARM-IN ARRANGEMENT IN THE LOCHEND/WILDCAT HILLS OF SOUTHWESTERN ALBERTA
Mystique Energy Inc. has entered into a wide-area farm-in arrangement with a major, Calgary-based oil company, in the Lochend/Wildcat area, located northwest of Calgary.
The arrangement comprises two agreements. The first agreement (area A) covers 97 sections (62,080 acres) of the farmor's 100-per-cent-owned lands. Area A extends south and southwest from Lochend/Harmatten, where Mystique has drilled five successful Cardium oil wells, and is bounded by townships 26 to 30, ranges 2 to 5, west of the fifth meridian. Mystique has committed to drill six commitment wells prior to May, 2006, and has the right to drill option wells until May, 2007. Under the terms of the agreement, Mystique will pay 100 per cent of the drilling and completion costs of each well to earn a 60-per-cent working interest in each well and two sections of land, including the section on which the well is located.
The second agreement (area B) covers over 27 sections (17,440 acres) of the farmor's 100-per-cent-owned lands. Area B covers the Jumping Pound/Wildcat Hills area and is bounded by townships 25 to 27, ranges 5 to 7, west of the fifth meridian. Mystique has committed to drill three commitment wells prior to May, 2006, and has the right to drill option wells until May, 2007. Under the terms of the agreement, Mystique will pay 100 per cent of the drilling and completion costs of each well to earn a 65-per-cent working interest in each well and three sections of land, including the section on which the well is located.
The terms of the agreements allow Mystique to have access to the farmor's database in both areas. The database comprises approximately 1,560 kilometres of seismic data.
According to Mystique president, Vic Luhowy: "These agreements provide us the basis for strong exploration driven growth over the next two years and beyond. The area is an expansion of the drilling successes and lands currently under option in the Lochend/Harmatten area. The size of the farm-in and access to seismic data provide us with multiple opportunities to pursue conventional, multihorizon light oil and sweet natural gas prospects. This area is also one in which our vice-president of exploration, Alex Tworo, has considerable knowledge, experience and past successes."
We seek Safe Harbor.
AI
