As announced on March 17th, the Company completed an acquisition increasing its Land Position by 300% and now holds mineral rights in 7,680 acres (3,840 acres net). Our 50% participation in these lands and the associated facilities are proving, as anticipated, to become the foundation of our current low-cost natural gas and liquids production in the region. Upon the completion of this acquisition the Company continues to focus on the integration of these lands and the Joint Venture’s Business Plan of being a fully Integrated Carbon Neutral Energy Producer.
Petro Viking Energy Inc., based on the business plan in place, has agreed to participate in two (2) new wells in West Central Alberta. Upon receiving the approval our operating partner the Company will be completing the final preparations for the filing of Application for the Licensing of the Wells immediately. The initial two (2) wells of a possible five (5) well drilling program in 2021. The Company has agreed to its full participation of 50% for the drilling of the initial 2 wells in the 3rd quarter of 2021.
The Company’s mineral rights, strategically located within proven producing rights with potential in the Belly River, Ellerslie, Duvernay and Wabamun are its foundation for the sustainable growth of its business. The first two wells as proposed are located within our existing infrastructure which will augment Petro Viking’s low-cost production of both natural gas and liquids. The addition of these two wells is anticipated to increase the Company’s production to over 300 boe/d.
These locations, in addition to ramping up production through workovers and remediation, puts the Company on solid footing towards its initial goal of 500 boe/d of sustainable low-cost liquids rich natural gas production in 2021, generating Corporate netbacks of approximately $15 boe/d resulting in the Company exiting 2021 generating greater than $2,500,000 per year at prices greater than CDN $2.40/mcf for natural gas and oil prices greater than WTI US $50.00/bbl.