AGREEMENTS / Tudor Corporation Ltd. Farm Out Agreement
T.S.E. symbol TDR
CALGARY, Jan. 21 /CNW/ - Tudor Corporation Ltd. is pleased to announce
that it's wholly-owned subsidiary, 551711 Alberta Ltd. (''551711''), has
signed an agreement with Kalta Energy Corp., an Alberta company. The
agreement, in part, calls for Kalta to expend $5 million over the next 18
months on 551711's natural gas properties in Central Alberta. These funds
will be used for seismic surveys, testing and completion of capped wells,
drilling of additional wells, purchasing new lands, and the tie-in of these
wells to nearby gas plants.
After the expenditure of the $5 million, Kalta will have earned 50% of
551711's working interests in the 16 existing wells and additional 16 sections
of land covered under this agreement.
Three of the capped wells have been recently tested as a matter of due
diligence and will initially produce over 3 million cu. ft. per day.
Further testing and drilling is expected to begin as soon as possible so
that the joint operating committee can determine compression requirements,
pipeline specs., etc.
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