Content area
Abstract
The North Esther Farmin provides [Magnus] with access to 18,400 gross acres (28.75 sections), as well as the right to interpret the Farmor's extensive seismic database in the area. Magnus earns a 100% WI in the section comprising each Test Well, subject to the Farmor's right to elect, at casing point, whether to convert to a 40% WI or retain a non-convertible gross overriding royalty. Following the drilling of its Test Wells, Magnus has the right to continue earning on the same terms by drilling additional Option Wells on a rolling option basis. Based on the current down spacing which is in place in the area, Magnus has the opportunity to drill up to 4 Viking gas wells per section.