Altima signs well participation agreement with Whistler
Ticker Symbol: C:ARH

 

Altima signs well participation agreement with Whistler

 

Altima Resources Ltd (C:ARH) 
Shares Issued 290,268,396
Last Close 1/22/2013 $0.04
Thursday January 24 2013 - News Release

Mr. Joe DeVries reports

ALTIMA ENTERS INTO PARTICIPATION AGREEMENT ON THREE FUTURE WELLS TO BE DRILLED AT CHAMBERS-FERRIER, ALBERTA

Altima Resources Ltd. has entered into a participation agreement with Whistler Oil and Gas Pty. Ltd., pursuant to which Whistler has been granted the right to earn a 50-per-cent working interest in three conventional vertical wells to be drilled on the company's currently held oil and gas leases located in the Chambers-Ferrier area of the Western Canada sedimentary basin in Alberta.

In consideration for a 50-per-cent working interest in the first of the Future Wells to be drilled on the Project (the "First Well"), Whistler has agreed to advance the Company $4,000,000 (the "Initial Investment"). The Company has received $2,700,000 from the Initial Investment to commence drilling the First Well, and the balance of $1,300,000 will be provided to the Company on "cash call" basis. Whistler has the right (but not the obligation) to invest additional funds, currently estimated at $8,000,000 (the "Additional Investment"), for a 50% working interest in the remaining two (2) wells comprising the Future Wells.

Whistler has agreed to pay 100% of the Drilling, Completion and Equipping costs of each Future Well drilled in order to earn its 50% Working Interest, provided that Whistler will receive 60% of the net revenue from the Future Wells until it has recovered 100% of its Initial and Additional Investments.

The Agreement will terminate upon the earlier of the date that the Initial and Additional Investment has been received by the Company from Whistler (and the subsequent transfer of a 50% interest in the Future Wells to Whistler), or June 30, 2014.

We seek Safe Harbor.

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