Anderson Energy Ltd. provides operations update
Friday, Dec 21, 2012Anderson Energy Ltd. ("Anderson" or the "Company") (TSX:AXL) provides the following operations update.
EDMONTON SANDS FARM-IN AGREEMENT
Anderson continues to focus on its light oil development prospects. The Company has reached an agreement in principle to terminate its commitment to drill 74 Edmonton Sands natural gas wells. In consideration for the termination of the commitment, the Company will convey to the farmor a 25% carried interest in four Cardium horizontal light oil wells that have been drilled or will be drilled in the fourth quarter of 2012 and first quarter of 2013. Three of these four wells are existing farm-in commitment wells to parties unrelated to the farmor in the Ferrier and Willesden Green areas. The fourth commitment well is on Anderson land at Garrington. To date, one of the commitment wells has been drilled and brought on production. The second commitment well has been drilled and the third commitment well has commenced drilling. The Company drilled 126 Edmonton Sands gas wells in 2008 and 2009 as part of the original farm-in agreement. The lands earned by drilling the 126 wells are not affected by the proposed amending agreement. The amending agreement is subject to completion of definitive documentation.
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