The Morningside Property is located along the Western Canada Sedimentary Basin in Central Alberta.
The Company owns in total three quarter sections (480 acres) in Morningside area after purchasing an additional quarter section of oil lease land in the area in 2012.
Recent crownland sales for the deep rights in the surrounding area has reached prices of approximately one million dollars per section and expect possible extension of Duvernay play developing. The company retains deep rights in the area through production.
A second well located in the Morningside area of Alberta was drilled and completed at no cost to the Company. The 13-23-42-28 W4M well is a dual zone gas discovery producing at approximately 300,000 cu.ft per day and the second 6-23-42-28 W4M well is now on stream and also producing at approximately 300,000 cu.ft of gas per day. The Company retains a gross overriding royalty (GORR) convertible to a 10 percent working interest after payout on the first well and a non-convertible GORR on the second well.
In September 2012, the company drilled a new well in the area. The newly drilled well was cased, fraced and is currently undergoing production testing.
The company has now identified 6 potential drilling locations on existing acreage. With purchase of current surface lease and existing pipeline, the company now directly drill additional wells using existing facilities, saving both time an money with future drilling.