The Saskatchewan oil and gas properties consist of one heavy oil prospect and two off-setting gas prospects in West Central Saskatchewan. The targets are close to existing production and infrastructure.
In late 2003 and early 2004 Greencastle conducted exploration drilling on two of the prospects. One was determined to be dry and has been written off the other became the Primate heavy oil discovery well.
In December of 2004, Greencastle entered into a Seismic Option Agreement with Trigger Resources Ltd. ("Trigger") to continue development of the Primate field. Under the terms of the Agreement, Trigger can earn 100% of Greencastle's interest by drilling and casing a test well in any land spacing unit, subject to Greencastle retaining a sliding scale royalty on any production.
In addition, Greencastle entered into a Farmout Agreement with Sphere Energy Corp.
("Sphere") whereby Sphere agreed to drill a test well on the North Primate property
Sphere can earn 100% of Greencastle's interest, subject to Greencastle retaining a sliding scale royalty on any production.
Both Primate and North Primate have been successful development projects and they now contribute a substantial amount of cash flow for Greencastle. Please see the company's financial statements and Management Discussion and Analysis for more detailed information.
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