Here is the PR that states it.
DENVER, Dec. 9, 2011 /PRNewswire/ -- Grid Petroleum Corporation (OTC.BB: GRPR.OB – NEWS) ("The Company") announces material enhancements to its plans to develop the Unconventional Shale acreage it joint ventures in the San Joaquin Basin in California.
In a strategic move, the Company has mitigated it's exposure to the initial exploratory risk associated with the development of the Unconventional Shale acreage to its joint venture partners in exchange for a reduction of the Company's working interest in the overall Kreyenhagen Trend oil shale play.
Grid Petroleum will have contributed on its behalf, a cash consideration , of 1.1 million dollars towards developmental expenses during the next twelve months by its joint venture partners. These costs include all lease costs for the next twelve months, the costs associated with the developmental study and all the costs and expenses of drilling the first test well on the acreage.
The Company has reduced its working interest from 50% to 20% with a net revenue interest reduction from 37.5 % to 14%
"We see this development plan for the acreage to be a very positive move for the Company," stated President James Powell. "Not having to cover these expenses before the first well is drilled allows the Company to reap the benefits of success in the acreage without having to expose any investment dollars."
The company is informed by its joint venture partners that the compilation of associated properties information stage is near completion and that the progress of the study remains on track. It is anticipated that the study will be completed and the first drill site will be selected within the first quarter of 2012.
The company previously announced the following estimated Oil In Place Potential of the Kreyenhagen Trend leases as determined by the company's geologists: "Initial estimates indicate that there exists 82,000,000 BOOIP. Eighty Two Million Barrels Oil Oil in Place."
The Company currently holds a 20% Working Interest in the 4,000 acres , Grid Petroleum Corp joint venture partners hold the other providing an estimated 16,400,000 BOOIP to Grid Petroleum's Interest.
