Perisson Petroleum Corporation, is pleased to announce that it has agreed to an assignment from Forent Energy Ltd. (the "Assignor") of the right to acquire oil and gas assets in the Ribstone area of Alberta and the Success area of Saskatchewan (the "Acquisition").
The Acquisition will consist of a 10% interest in McLaren and Sparky oil pools at Ribstone, Alberta, and a 10% interest in a Roseray oil pool at Success, Saskatchewan. The Ribstone and Success pools are not currently producing and have 5 wells and 2 wells respectively on the properties, which were suspended from production due to low oil prices in the last 16 months.
The Alberta Energy Regulator has assigned 6 million barrels of oil in place to the Ribstone pool, and, to date, only 5% of this oil has been recovered. Upon closing of the Acquisition, Perisson will become operator of the properties and intends to improve the operating efficiencies at Ribstone by recompleting one of the existing wells, or by drilling a new well, to provide onsite water disposal and reduce the current operating expenses.
The Assignor has identified 10 future McLaren well locations and 8 Sparky well locations which it believes can be placed on production for less than $15,000/BOE/day. Perisson will evaluate the merits of this proposed program, and proceed with drilling of new wells upon the recovery of oil prices.
The Success project has two existing Roseray wells which require the installation of high-volume bottom hole pumps and the conversion of a third well to water injection as part of the improvement in operating efficiency which is planned by Perisson.
As part of the terms of the Acquisition, Perisson will have the right to acquire a further 40% working interest in both the Ribstone and Success properties, upon evaluation of the results obtained by improving the operating costs or the drilling of additional wells. The acquisition price for the additional 40% working interest will be based on a 20% premium to the original purchase price plus the proportionate 40% share of the remediation expenditures which are to be incurred after Perisson becomes the operator. The Perisson option to acquire this additional interest must be exercised within 120 days of the remediation activities and first production from the existing wells.
Source: Perisson Petroleum Corporation
Date: Aug 15, 2016