Xun Energy (XNRG) will take part in Global Energy Acquisitions’ (GEA's) oil and gas wells drilling program in Adair County, Kentucky, if it invests in the program.
GEA plans to drill 15 wells on a 416-acre parcel up to a depth of 2,000ft and each well will be drilled to a depth of up to 2,000ft in order to reach the Murfreesboro or Knox Formations.
The targeted date for the completion of the $2.55m funding requirement has been set to 28 February 2011.
GEA will pay XNRG maximum 12.5% gross royalty on revenues generated from the drilling program, if it is a success.
XNRG president Peter Matousek said the participation in the oil and gas program would provide the company with steady cash flow.