Business
Unitech Energy sells Leadscan regional study and purchases gross overriding royalty and participation option
CALGARY, Jan. 3 /CNW/ - Unitech Energy Resources Inc. ("Unitech") (TSXV: URX) is pleased to annou...
About this update from Decimus Oil Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, Jan. 3 /CNW/ - Unitech Energy Resources Inc. ("Unitech") (TSXV:\nURX) is pleased to announce that it has entered into a Geological Consultancy\nAgreement with a private oil and gas company ("PrivateCo") pursuant to which\nUnitech agreed to generate a regional bypassed hydrocarbon study in\nconsideration for the sum of $795,000. Unitech used its proprietary image\nanalysis and pattern recognition system, called Leadscan, to generate the\ngeological study on approximately 9,000 wells within Townships 1 and 8, Ranges\n1 to 11, W2M (the "Area") and targeted the Bakken, Frobisher and Midale\nformations. The consideration payable to Unitech under the Geological\nConsultancy Agreement was satisfied by a cash payment of $95,000 and the\ngranting by PrivateCo to Unitech of a gross overriding royalty ("GORR") and a\nworking interest participation option ("WIPO") on approximately 6,000 acres of\nland in the Area. The terms of the WIPO as set out in the Farmout and\nParticipation Agreement entered into with PrivateCo are such that Unitech can\nearn 9% of PrivateCo's working interest on any wells drilled on lands in the\nArea currently held by PrivateCo by electing to pay 15% of PrivateCo's share\nof the costs to drill any such wells. Unitech also entered into an Overriding\nRoyalty Agreement with PrivateCo which provides for the payment to Unitech of\na 3% GORR on PrivateCo's share of new production on the royalty lands in the\nArea. There is no current production subject to the GORR or the WIPO and\nUnitech will not be able to value the GORR and/or WIPO until such time as\nproduction is achieved. The term of the GORR and the WIPO expire on\nDecember 31, 2009, with Unitech retaining all interests earned under the\nFarmout and Participation Agreement.\n\n\nAbout Unitech Energy Resources Inc.\n\n\nUnitech uses its proprietary image analysis and pattern recognition\nsystem, called Leadscan, for a 'first look advantage' that drives Unitech's\nexploration strategy. Please visit Unitech's website at www.leadscan.ca.\nShares of Unitech are listed for trading on the TSX Venture Exchange under the\nsymbol URX.\n\n\nExcept for statements of historical fact, this news release contains\ncertain "forward-looking information" within the meaning of applicable\nsecurities law. For...