Arctic Hunter Energy Inc.’s recently completed well on their core heavy oil operating Landrose property in west central Saskatchewan began production in late January. It has since produced at an average of 50bpd of heavy oil. Arctic Hunter Energy entered into a sub-Participation agreement with Alberta Star Development Corp. To participate with Alberta Star in the drilling of this test well, of which Alberta Star holds a 50% working interest.
Under the terms of the agreement, Arctic Hunter must pay 50% of Alberta Star’s portion of the costs of drilling, completing and equipping the test well to earn a 25% working interest in the well, consisting half of Alberta Star’s pre-participation and half working interest.