Primary Petroleum Corp. has signed a joint venture agreement with Kierland Resources Ltd. to evaluate the Sunburst formation on a development prospect in Southern Alberta.
Primary has secured a seismic option on 256 hectares and an area of mutual interest of 2,048 hectares. Primary and its joint venture partner have commenced a 3-D seismic program which covers approximately four square miles. It is anticipated that the seismic program should confirm up to five potential drilling locations.
Contingent on the seismic results, Primary and Kierland will drill an option well to earn-in the lands.
Potential recoverable reserves from this prospect are in excess of 300,000 barrels of oil with an average gravity of 38 degree API.
Primary and Kierland will each have a 50-per-cent WI BPO and 30-per-cent WI APO in the project.
Primary is the designated operator of the joint venture agreement.