CALGARY, June 21, 2011 /CNW/ - Ptarmigan Energy Inc. (Ptarmigan) has
completed an option agreement for its Western Newfoundland exploration
licence with Canadian Independent Oil and Gas Company (CIOGC), a
privately held, Calgary based oil and gas exploration company.
President and CEO Craig Boland says that a discovery under this
agreement will yield Ptarmigan a gross overriding royalty based upon a
percentage of the gross production proceeds without deductions. "We are
excited and very pleased that this agreement, coupled with the recent
gas-in-shale farm out agreement with Shoal Point Energy (April 2011),
has established strong partners to explore both traditional and
non-traditional targets within Exploration Licence 1120, with very
favourable terms for our shareholders."
Under the terms of the agreement CIOGC has 90 days to review existing
seismic data and decide whether or not to exercise its option to
acquire, a minimum of 1000 square kilometres of high definition 3D
seismic data within the area of Exploration License 1120; 100% owned by
Ptarmigan Energy. Exploration Licence 1120 is currently undergoing an
environmental assessment and permitting process required by the Canada
Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB).
Should CIOGC exercise its option to collect additional seismic data, it
would be in a position to execute a definitive agreement with a seismic
acquisition contractor by October, 2011 with a view to starting that
work in September 2012 following completion of the environmental
assessment process. CIOGC has until December 2013 to exercise its
option to drill a test well to the depth of 3,250 meters or 50 meters
into the top of the Labrador Formation; the established marker below
all anticipated targets. That well must then be spudded by no later
than December 2014.
About Ptarmigan Energy Inc. - Ptarmigan Energy Inc. is a private oil and gas company whose management
and technical team are committed to exploring and successfully
developing oil weighted projects in both the conventional and
non-conventional (oil-in-shale) prospects defined within the offshore
waters of the autochthonous and allochthonous sections of the
Cambro-Ordovician platform of Western Newfoundland. For more information go to: www.ptarmiganenergy.com
Image with caption: "Logo for Ptarmigan Energy Inc. (CNW Group/Ptarmigan Energy Inc.)". Image available at: http://photos.newswire.ca/images/download/20110621_C7931_PHOTO_EN_01.jpg
SOURCE Ptarmigan Energy Inc.
For further information:
Craig Boland, President and CEO