WESTCORE ENERGY LTD. - (TSX VENTURE:WTR) ("Westcore" or the "Company") is pleased to announce the commencement of a 6 well drilling program (the "program") on the Riverside property owned by Allstar Energy Limited ("Allstar"), a 100% owned subsidiary of 49 North Resources Inc.
The target locations were selected in the Success formation based on the results of the 3D seismic testing announced on September 25, 2012. Using this interpreted 3D seismic data, the first well in the program was drilled 400 meters north of a producing recompleted well in the southwestern portion of the Riverside land package. Drilling encountered an oil bearing zone of approximately 40 meters. The second well in the program was drilled a further 600 meters north of the first well (1,000 meters north of the recompleted well) and encountered an oil bearing zone of approximately 32 meters.
Drilling of the 6 well program is anticipated to be completed by the end of December 2012. Production completions will be initiated next week.
Pursuant of the Farm-In Agreement with Allstar, Westcore had spent approximately $1,000,000 on aforementioned 3D seismic survey. In exchange for the completion of the seismic, Westcore will earn a 60% working interest on a pro rata basis of $1,000,000 applied against total drilling costs on the Riverside Lands in this program. In addition, Westcore has been granted an ongoing right of first refusal to participate in additional programs on the Riverside Lands, whereby Westcore will fund 100% of drilling operations (to a maximum amount of $1 million) for a further 60% working interest in such programs.
Paul Conroy, the President and CEO of Westcore states "We are encouraged with the preliminary results of the first two wells of the six well program. The interpreted 3D seismic data has proven as an extremely valuable tool to help define the economic oil potential at Riverside".
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