VANCOUVER, Feb. 21, 2012 /CNW/ - Great Pacific International Inc.
("GPI") (TSXV: GPI) is pleased to report that GPI Oil & Gas Inc., a
100% owned subsidiary of the Company, has reached an agreement with an
independent operator to farm in on a leasehold interest held by the
Company in North Central Alberta.
The Independent Operator will earn a 60% interest in the lease by
re-entering an existing well. The Independent Operator will pay 100% of
the costs to re-enter this well. Great Pacific has agreed that the
Operator will have 100% interest in the re-entered well and will have a
60% interest in any additional wells. GPI will retain a gross
overriding sliding scale royalty interest of 5% to 15% on the
Should the Independent Operator issue a notice that they intend to drill
another well, GPI will have the option of participating to our 40%
interest or converting our interest to a 5% to 15% gross overriding
Historically, the well subject to re-entry had produced just over 30,000
Bbls of oil over its operating period, while other similar wells in the
area had produced in excess of 100,000 Bbls. Based upon it's evaluation
of nearby wells and geophysical data, the Independent Operator believes
that oil is likely present in the formation that it is targeting. The
historical results of these wells can not be considered indicative of
what may be expected from the re-work of this well.
Our farm-in partner, an independent operator has over 40 years of
experience in the oil and gas industry in Alberta.
We seek safe harbor.
SOURCE Great Pacific International Inc.
For further information:
Thal S. Poonian, President, at 604-940-9190, toll free 1-877-942-8765 or by email email@example.com.