The property hosts the highly prospective Mission Canyon, McGowan, Bakken and Three Fork formations.
Nextraction will earn its interests in exchange for funding a 3-D seismic program and the completion of wells to exploit these formations.
The target of the initial phase of the joint venture is the western Bakken fairway of the Williston Basin in northeastern Montana.
The Williston Basin is a productive basin in Montana and Saskatchewan, and horizontal drilling for oil on the Bakken formation in Montana, North Dakota and Saskatchewan has opened up new potential for large scale oil reserves.
The joint venture will shoot a 15,000-acre 3-D seismic program whereby Nextraction funds 75% and Primary Petroleum funds 25% of the data collection costs.
Nextraction will operate the project and immediately drill a vertical well to test and core the prospect formations by 15 April 2011.
Canada-based Nextraction is engaged in the exploration and development of oil and gas resources in North America.
