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Spruce Ridge Oil & Gas Partners with Local Operator to Upgrade Saskatchewan Oil Production
(TheNewswire) July 25, 2022 – TheNewswire – Ontario - Spruce Ridge ...
About this update from Homeland Nickel Inc
[{"type":"text","content":"Spruce Ridge Oil & Gas Partners with Local Operator to Upgrade Saskatchewan Oil Production\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n July 25, 2022 – TheNewswire – Ontario -\n \n \n Spruce Ridge Resources Ltd. (TSXV:SHL)\n \n \n (OTC:SRCGF)\n \n \n (“Spruce\nRidge” or the “Company”) is pleased to announce that Spruce\nRidge Oil & Gas Inc. a 100% owned subsidiary has signed a Letter\nof Intent with Original Oil Inc. (“OOI”), under which OOI will\nacquire 50% of the 4-section (≈ 1,036 hectares) lease near Unity,\nSaskatchewan, and 10 oil wells (of which 8 are now shut in) held by\nSpruce Ridge Oil & Gas Inc. (“SRO&G”).  OOI is a\nLloydminster-based, seasoned, successful oilfield operator in the\narea.  OOI will become the operator and, at its own expense, will\nrepair and rehabilitate all of the shut-in Unity wells with a view to\nreducing the high level of water incursion that has been an ongoing\nproblem for SRO&G.  Highlights of the agreement are:\n \n \n \n \n \n \n As part of the agreement, OOI will assume liability for\nclosure, and SROG will be able to claim a refund of the $554,630\nsecurity deposit that it paid under the Saskatchewan LLR program when\nit originally acquired the Unity leases;\n \n \n \n \n \n \n OOI will use its experience, local expertise and local\nconnections to service, repair and rehabilitate all 8 of the shut-in\nwells at its own expense.  These expenses will be paid back from\nMonthly Net Revenue (MNR) generated from these wells;\n \n \n \n \n \n \n OOI will pay SROG $250,000, to be paid by dividing\nMonthly Net Revenue (MNR) 75% to SROG and 25% to OOI, until SROG is\npaid out, after which MNR will be divided 50/50.\n \n \n \n \n \n \n John Ryan, CEO of Spruce Ridge, stated “by partnering\nwith Original Oil we will benefit from its experience in low-cost,\nefficient oil production.  We fully expect that the partnership will\nturn an underperforming asset into a source of significant cash flow\nfor years to come.”\n \n \n \n \n Dustin Newman, P.Eng., President of Original Oil Inc.,\nstated “The Spruce Ridge oil play at Unity Saskatchewan is an oil\nplay that shows upside for oil production with low operating costs. \nThe oil play ...