The consortium has taken steps to obtain Pessamit’s exclusive consent to conduct exploration work in Pessamit’s territory, and on other lands and territories located in the Nistassinan of the Innus of Pessamit.
An initial work program, consisting of geophysics surface work at a cost of approximately $100,000, is anticipated to be conducted during the months of January through March 2011.
The initial exploration work will be followed by additional work during the spring of 2011, provided that the initial exploration work is conclusive.
Pessamit has agreed that TransAmerican Energy may undertake an oil and gas exploration program in its territory, based on the company’s commitment to offer Pessamit an opportunity to be involved in a possible exploitation of an oil and gas field that may be uncovered in the territory.
TransAmerican Energy anticipates expending up to $1m to conduct the exploration program in the Pessamit territory.
TransAmerican and Dumasbancorp ULC have agreed that Pessamit will hold a carried interest in any oil and gas field that may be uncovered on their lands.
If such a field is uncovered, the nature and terms of Pessamit’s involvement in a possible exploitation of such oil and gas field will be defined and agreed by the parties in a formal final agreement to be prepared, which will be subject to receipt by TransAmerican of any required regulatory approval.
