CALGARY, Oct. 5 /CNW/ - Petro Uno Resources Ltd ("Petro Uno" or the "Company") is pleased to announce it has entered into a Farm-in Agreement ("Agreement") with a privately owned oil company located in the Kindersley area of South West Saskatchewan encompassing 1,000 net acres of land prospective for horizontal well development targeting the Viking Light Oil formation. The Company is committed to drill two horizontal wells within 180 days on the land blocks as defined by the Agreement. Petro Uno will earn a 100% working interest in said wells in exchange for a gross overriding royalty. Thereafter, the Company is to drill a minimum of one horizontal well on the lands every six months. The Company has also been granted a right of first refusal on an additional 640 net acres adjacent to the above referenced lands providing for additional potential horizontal well development opportunities. Providing that the initial commitment wells are successful, the Company sees potential for up to 20 wells to be drilled on the combined acreage.
In addition, the Company has been notified by Ward Williston Oil Company ("Ward Williston") that due to unforeseen issues it is currently unable to close the sale of the McKinney Field as scheduled. Ward Williston is hopeful that it will resolve its issues within 60 days and advised the Company that it remains willing to complete the sale on the original terms that were previously announced. If Petro Uno is satisfied with the purchase terms at that time it currently intends to complete the transaction.
About Petro Uno
Petro Uno is a junior oil and gas company trading on the TSX Venture Exchange under the symbol "PUP". Petro Uno currently produces approximately 35-40 BOD of light crude oil from wells located in Alberta, Canada. The Company is actively seeking out oil exploration and development opportunities in Saskatchewan, North Dakota, and Montana, whether by farm-in or acquisition. For further details on the Company, readers are referred to Canadian regulatory filings on SEDAR at www.sedar.com.
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responsibility for the adequacy or accuracy of this release.
SOURCE PETRO UNO RESOURCES LTD.
For further information: For further information: William E. Ambrose, President and CEO, 725, 435-4th Avenue S.W., Calgary, Alberta, T2P 3A8, (403) 410-3371