Business
Zodiac Exploration Announces Closing of Strategic Asset Acquisition and Update on Drilling of the Initial Evaluation Well in King's County
Feb. 1, 2011 (Filing Services Canada) -- Zodiac Exploration Inc. (ZEX - TSX Venture), announces...
About this update from Sintana Energy Inc.
[{"type":"text","content":"\nZodiac Exploration Announces Closing of Strategic Asset Acquisition and Update on Drilling of the Initial Evaluation Well in King's County\n\n\n Feb. 1, 2011 (Filing Services Canada) -- Zodiac Exploration Inc. (ZEX - TSX Venture), announces that it has completed its previously announced acquisition of properties through a farm-in agreement  in California, effective January 31, 2011.  Pursuant to which Zodiac has acquired a 74.5% net revenue interest in approximately 21,500 acres (the \"Assets\") located in Kings and Kern Counties in the heart of the San Joaquin basin (the \"Acquisition\").Further Information regarding the AcquisitionTotal consideration paid by Zodiac for the Assets was approximately US $8.4 million which was comprised of US $5.6 million in cash, US $1.9 million in common shares of Zodiac and a US $0.9 million credit to the seller in respect of future cash calls made by Zodiac in connection with joint operating agreements in place between Zodiac and the seller.  In addition, as part of the earning arrangements of the farm-in agreement, Zodiac is required to pay approximately 92% of the costs to drill two wells to test the Monterey and Kreyenhagen formations.  The first well will complete Zodiac's earning requirements on approximately 10,750 acres (net 8,010), and must be drilled by January 1, 2013.  The second well will complete Zodiac's earning requirements on approximately an additional 10.750 acres (net 8,010), and must be drilled by January 1, 2014.The Acquisition remains subject to final acceptance by the TSX Venture Exchange.  The closing of this transaction increases Zodiac's land position in Kings and Kern Counties to approximately 85,000 net acres.Drilling Update on Initial Evaluation WellThe Company continues to drill its initial evaluation well on the Jaguar prospect which was spud on December 25, 2010.  The well is currently drilling ahead at approximately 12,000 feet and the first core in the Monterey formation has been recovered and delivered to the lab in Bakersfield for analysis.The well is anticipated to take up to 80 days to drill and complete with drilling operations expected to take approximately 50 days from the date of commencement of drilling operations and completions operations expected to take up to an additional 30 ...