Petro Viking Increases its Land Position by 300% in West Central Alberta - Land.Net News
Petro Viking Energy Inc.(“Petro Viking” or the “Company”)(CNSX:VIK.V.CN)is pleased to announce the completion of the Acquisition of mineral rights, increasing its land position by 300%in West Central Alberta.
As a result of the acquisition, the Company now holds a 50% interest in 7,680 acres of mineral rights, (3,840 acres net). The completion of this acquisition positions the Company with additional opportunities for growth in its core Area immediately adding 10 locations for a total of 15, increasing significantly both Proven and Probable reserves. The Gross Purchase Price was $285 per acre, with the total net cost to Petro Viking, being $747,640 including administrative fees from its Joint Venture partner of approximately $10,000. The mineral rights acquired are strategically located within a proven region where the mineral rights acquired are economically producing from theBelly River, Viking, Ellerslie, Duvernay and Wabamun.
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 or > $2,500,000 per year at prices greater than CDN $2.40/mcf for natural gas and oil prices greater than WTI US $45.00/bbl.
Petro Viking Energy Inc.’s proven and undeveloped lands are anticipated to result in an additional increase in its proven reserves of approximately 1,000,000 boe (net) to more than 2,000,000 boe (net) in early 2021; based on the execution of an approved Capital Program fully funded from working Capital and future Cash-flows.
The Company is pleased to have been able to act on this opportunity to increase the production from Liquid Rich Natural Gas from the Belly River, Lower Mannville, Viking and Wabamun Formations, all being proven reservoirs in the region processing both quality and thickness comparable to on-trend wells that have produced between 1.0 - 3.5 Bcf per well in the area. In addition to this, the acquired lands are located over the Oil window of the Duvernay Formation where it is expected to have long-duration linear flow rate wells.