Southlake, Texas-based Norstra Energy Inc. (OTC: NORX) and Houston-based BNV Energy Co. LLC entered an agreement to drill natural gas wells in Montana, Norstra said June 25.
For about $1.5 million, BNV will drill the wells on Norstra’s Milford Colony section in northwest Montana, the company said, noting that BNV will also build a gas-gathering system that will move the gas through the Northwestern Energy Pipeline.
BNV will earn a 60% working interest in Milford Colony’s nearly 5,382 acres, Norstra said. The working interest will be “directly contributed” by Vancouver, British Columbia-based Super Nova Petroleum Corp. (OTC: SNOVF), the other joint venture partner, the company added. Super Nova will have 20% working interest in the area and also an 80% working interest in the remaining 4,618 acres left from a January deal with Norstra, the company said.
The wells are scheduled to be drilled by Sept. 30, Norstra said.
BNV will receive 4 million stock purchase warrants from Norstra after depositing $400,000 in a drilling escrow account, Norstra said.
"The more and more we do a regional evaluation of the Rocky Mountain front where we are, the more and more were seeing a case for proving up a natural gas 'province' or 'mountain front' in the area. The company, along with the oil and gas technical experts at BNV, have pored over all the data we could get our hands on, and have mapped many high-intrigue traps and structures we want to target right away,” said Glen Landry, Norstra’s CEO.
"We were, and are, a company very interested in the deeper oil in the Bakken Formation, but the potential natural gas in Lewis and Clark County cannot be ignored with its several hundred feet of pay through two separate sand formations reaching depths of almost 5,000 feet,” he added.
"The company continues to entertain other offers and interest from potential partners and investors to deepen our partially drilled Milford Colony 13-11 well to ultimately test the Bakken Formation at approximately 8,800 feet. Norstra is still very positive on the economic potential of the Bakken Formation which blankets our entire prospect," he said.
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