The Bakken discovery well, CPEC et al Flat Lake HZ 3B5-10-4B5-9-1-16W2 (35% working interest) flowed at an average restricted rate of 208 bbls/d for a 24 hour period following 5 days of continuous testing. The well was shut-in temporarily in order to prepare it for production.
This is the first well drilled in the Company's new Flat Lake core area, which was acquired through a farm-in arrangement. Through participation in the well, Painted Pony now has a contiguous block of 6,000 net acres (9.4 sections), all of which is Crown land that will receive Saskatchewan's deep horizontal royalty incentive on the first 100,680 bbls produced per horizontal well. The Flat Lake asset provides a significant increase to the Company's Bakken drilling inventory.
In the Company's Midale core producing area, an agreement has been reached to acquire 3,349 net acres (5.25 sections) of 100% working interest lands with Bakken rights for $1.8 million. These Crown lands will receive Saskatchewan's deep horizontal royalty incentive on the first 100,680 bbls produced per horizontal well. The lands are contiguous to Painted Pony's existing producing assets. The additional acreage provides significant development opportunities and synergies with the Company's existing infrastructure.
Source: Trading Markets