Re: With Natural-Gas Prices Low, Drillers Se (CPG's Alberta Bakken Farmout)
<<<Instead, it can charge royalties to other companies – a strategy it is now pursuing on lands that lie in some of Western Canada’s most prominent new oil plays, including the Viking, Cardium and Alberta Bakken. Encana has agreed to allow other companies to explore some of its lands in exchange for a royalty of anywhere between 30 and 38 per cent.
In the biggest deal, it gave Crescent Point Energy access to a 350,000-hectare swath along the Montana border in what is known as the Alberta Bakken; the play that has drawn immense attention in the past year, including from major companies such as Royal Dutch Shell PLC.
By some estimates, the Alberta Bakken contains as much oil as Saskatchewan’s Bakken play, or roughly five million barrels in place per 260-hectare section. With about 10 to 20 per cent of that recoverable, the Encana lands could contain a massive pool. Under the terms of its joint ventures, a company such as Crescent Point has access to the Encana land for a three- to five-year period, and must drill one section of land to earn an interest in it.>>>
I was wondering where CPG got their 1 million net acres in the Albert Bakken, Now I know were 350k came from.