As per the terms of the agreement, Portal has the right to earn a 25%, non operating, working interest in a total of four sections of land (2,560 acres).
A 25% working interest in the first two sections will be earned by participating in, and paying a 50% cost share of, the drilling of one vertical and one horizontal well.
An interest in an additional two sections of land will be earned with participation on a ‘straight up basis’ (25% of costs for a 25% working interest).
Modeling of newly acquired 3D seismic data suggests that there is development potential directly offsetting the production on adjacent lands within the Birdbear formation.
The Birdbear formation lies at a depth of approximately 750m, is 5m to 7m thick and due to the fact that it is a carbonate unit that has undergone dolomitization, shows porosity up to 15%.
Drilling operations are slated to begin after spring breakup while the completion operations will consist of an acid wash and squeeze using coil tubing prior to the commencement of production.
