Eros Resources Corp.has entered into a Joint Operating Agreement (JOA) with Westcore Energy Ltd. and Saturn Oil + Gas Inc. to develop three sections of land near Flaxcombe, Saskatchewan. Under the terms of the Agreement, each of Eros, Westcore and Saturn shall have a one-third (33.33%) working interest in the sections. This provides Eros with a direct interest in the future exploration results, reserve assessment and possible development within the Flaxcombe, heavy oil field. The three parties are currently preparing a budget and schedule to develop this ground.
The three sections are contiguous with Westcore’s 100%-owned sections 12, 13 and 5, where Eros and Westcore are operating under a well-development agreement. Under this agreement, Eros funded the completion of three wells for USD 1.6M to earn a 90% working interest until the capital investment is repaid, and a 50% working interest thereafter. In addition, Eros has the right of first refusal on two additional, three-well projects for the same consideration. Recently, Eros announced that well 9-13 had completed its initial 30-day production test, showing an average production rate of 80 barrels of oil per day. The two additional wells have been completed and brought on production.
