The company and its industry partner acquired this new Landrose heavy oil property on a 50/50 basis, paying an aggregate cash consideration of approximately $82,000 ($41,000 net purchase price to the Company), inclusive of administrative fees and applicable taxes.
Alberta Star and its partner have secured a drilling rig for the first week of December 2010 and expects to incorporate this acquisition into, and increase its drilling program to three new wells to be drilled in December 2010.
Two of the new drill targets will be in-fill wells located on section 6-50-25-W3M situated near the successful C-11, C-12, C-14 Landrose wells and one new drilling location on Section 16-50-26-W3M, also situated in Landrose, Saskatchewan.
Subject to successful drilling and completion activities, production from these three new wells slated to be drilled, is expected to be similar to production rates currently being attained by nearby heavy oil wells in production at Landrose.
