Altima has agreed to pay 33.75% of the costs of drilling through completion to earn a 24.80625% interest in the well and farm-in lands covering an area of 576 hectares.
The company’s payment is subject to its proportionate share of a 4.7% gross overriding royalty.
Altima expects the location in the Rainbow Lake area of northwestern Alberta, that has new high resolution 3D seismic support, will enhance the opportunity to encounter better than average production.
Permitting has commenced and the farm-in well will test for oil generally present in the area.
The company expects the well will be spud next month.
