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Unitech studies Bakken, Frobisher, and Midale formations in southeast Saskatchewan and announces first royalty well
CALGARY, March 26 /CNW/ - Unitech Energy Resources Inc. ("Unitech") (TSXV: URX) is pleased to ann...
About this update from Decimus Oil Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, March 26 /CNW/ - Unitech Energy Resources Inc. ("Unitech")\n(TSXV: URX) is pleased to announce that it has been notified by the private\noperator of Unitech's southeast Saskatchewan override lands (the "Lands"),\nthat the first well subject to Unitech's gross overriding royalty interest (as\npreviously announced on January 3, 2008), has been farmed out to a third party\nand is expected to spud soon after spring breakup. The Midale formation is\ntargeted. The Lands consist of approximately 6,000 acres within Townships 1\nand 8, Ranges 1 to 11, W2M in south-east Saskatchewan (the "Area"). Over 50%\nof these Lands are in the Tableland area and within the Bakken play trend.\n\n\nAs previously announced on January 3, 2008, Unitech used its proprietary\nimage analysis and pattern recognition system, called Leadscan, to generate a\nregional geological study covering the Area. The study targeted the Bakken,\nFrobisher and Midale formations. The consideration payable to Unitech was\nsatisfied by a cash payment of $95,000 and the granting by the private\noperator to Unitech of a gross overriding royalty ("GORR") and a working\ninterest participation option ("WIPO") on the Lands.\n\n\nThe agreements entered into with the private operator provide for the\npayment to Unitech of a 3% GORR on new production on the Lands in the Area.\nThe terms of the WIPO are such that Unitech may elect to participate in a well\nto earn 9% of the operator's working interest on any wells drilled on lands in\nthe Area currently held by the operator by paying 15% of the operator's share\nof the costs to drill any such wells. Unitech has elected to participate in\nthis Midale well via the GORR rather than pay for an additional working\ninterest.\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. Forward-looking information is f...