Westcore Energy Ltd.(TSXV:WTR) announced entering into a farm-in agreement with Allstar Energy Limited. The agreement is subject to review by the TSX Venture Exchange. Under the terms of the agreement, Westcore aims to complete a 3D seismic survey on the Riverside lands.
As quoted in the press release:
Based on the information obtained from the seismic program, a drilling program will be planned for the Riverside Lands. In exchange for its completion of the seismic program, Westcore will earn a 60% working interest in certain wells drilled on the Riverside Lands under that program. In addition, Westcore has been granted an ongoing right of first refusal to participate in additional wells 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 wells.
Westcore, President, Paul Conroy, said:
The chance to participate in Allstar’s seismic and drilling programs represents an excellent opportunity for Westcore to expand and diversify in its objective of providing energy solutions for North America. The proposed program is an ideal complement to our existing and ongoing activities with our principal coal properties and represents an exceptional occasion to diversify our portfolio of assets, which we hope will also provide a stable stream of cashflows over the short term and into the foreseeable future. We look forward to exploring with Allstar and building on their past success.