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ALGARY, ALBERTA, Dec. 7, 2010 (Marketwire) -- Bowood Energy Inc. (TSX VENTURE:BWD) ("Bowood" or the "Company") is pleased to announce that it has entered into a strategic joint venture and farmout arrangement (the "Joint Venture") with Legacy Oil + Gas Inc. ("Legacy"), on Bowood's extensive Alberta Bakken acreage, consisting of approximately 183 sections (117,000 acres) of lands (the "Lands") located in southern Alberta.
Under the terms of the Joint Venture, Legacy will, through a combination of land equalization and drilling, have the ability to earn 50 percent of Bowood's entire interest in the Alberta Bakken fairway lands. Initially, Legacy will equalize into a portion of the Lands by providing a cash payment to Bowood of $8 million to purchase a 50 percent working interest in 33,280 acres (52 sections) of Lands (the "Acquired Lands"). The Acquired Lands consist of a mix of Crown and Freehold Lands which are not located on the Blood Tribe Reserve (the "Blood Tribe Lands").
On the remaining 131 gross sections of land (the "Farmout Lands"), including the 94.75 gross sections of Blood Tribe Lands, Legacy initially will drill two (2) horizontal Test Wells which will target the lower Banff, Exshaw/Bakken and Big Valley formations. The first Test Well will spud prior to March 31, 2011 and the second Test Well will be spud prior to August 31, 2011. One of the Test Wells will be located on the Blood Tribe Lands and the other will be located on the remaining non-Blood Lands. With each Test Well, Legacy will be responsible for 80 percent of the drilling and completions costs of such Test Well and and shall earn a 50 percent working interest in 8 sections of the Farmout Lands. Following the drilling of the two Test Wells, Legacy will have the right to continue earning in the Farmout Lands on a rolling option basis...
Fifty million dollars will flow into the Blood Reserve coffers with Canada’s largest First Nation’s oil and gas lease agreement concluded Tuesday in Calgary with Murphy Oil and Bowood Energy Ltd.
Chief Charles Weasel Head said the revenues from the agreements could help the tribe economically and create more opportunities for the members to work in the petroleum industry.
“This deal was too good to let it pass by,” he said in a release Tuesday. “It’s a one-time opportunity and it will give the Blood Tribe members some long-term benefits.”
Once the documents are completed and signed by chief and council, Indian Oil and Gas Canada, Murphy and Bowood, the bonus dollars will be released into the tribe’s capital account with the federal government...
September 9, 2010
EL DORADO, Arkansas, September 9, 2010– Murphy Oil Corporation (NYSE:MUR) announced today that its wholly owned subsidiary, Murphy Oil Company Ltd., has entered into an agreement with Kainaiwa Resources Inc., a corporation wholly-owned by the Blood Tribe First Nation to acquire 202 sections (129,280 acres) of prospective oil and gas properties located within the Blood Tribe Reserve in southern Alberta. The lease agreement will give Murphy drilling rights on the property for 5 years with a minimum of 16 wells to be drilled during this time.
David Wood, Murphy Oil Corporation President and Chief Executive Officer, commented, “We are very pleased to add a fourth resource play in North America to complement our existing acreage in Seal Lake, Montney and Eagle Ford .” Wood added, “The Blood First Nation’s lands add further to our growing position in the Exshaw/Bakken play of Southern Alberta where we are targeting its oil potential.”