SASKATOON, SASKATCHEWAN–(Marketwired – Feb. 6, 2017) – Westcore Energy Ltd. (“Westcore” or the “Company”) (TSX VENTURE:WTR) is pleased to announce that it has entered into a farm-in agreement (the “Agreement”) with Eros Resources Corp. (“Eros”) to complete a 3 vertical well program on Westcore’s Flaxcombe oil field. Under the terms of the Agreement, Eros will fund 100% of the cost to drill, complete and bring the wells on production in exchange for a 90% interest in the wells before payout, and a 50% interest after payout. Eros shall also retain a right of first refusal on two subsequent drill programs under the same terms.
The Flaxcombe field is located 30 kilometres west of Kindersley, Saskatchewan. With four wells producing, the field is generating approximately 85 barrels of oil per day and there remain additional standing well-bores and shut-in production that can be re-initiated at any time. The field has been optimized with the use of WTR’s 100% owned water disposal facility, oil and water haulage capability and the use of casing gas to power the wells and to heat storage tanks.
The 3 well program is designed to drill offset locations to Westcore’s existing production wells at Flaxcombe. It is anticipated that the drill program will commence in mid February, with the intent of having all three wells on production before break-up.