VANCOUVER, April 5 /PRNewswire/ - Great Pacific International Inc. ("GPI") (TSX.V: GPI) is pleased to announce that the company has received a trade copy of a 3-D Seismic shoot from Penn West Exploration ("Penn West"). Penn West has now been registered as a 50% working interest in all petroleum and natural gas rights on the Property located at Section 31, Township 90, Range 12, West of the Fifth Meridian (see press releases of January 11 and February 4, 2011) and is designated as the operator of the Property. GPI's technical team is presently reviewing the 3D seismic Data.
As per the Agreement with Penn West, Penn West, at its sole discretion, shall have the right to serve an Independent Operations Notice ("ION") for the drilling of a joint well pursuant to the terms of the Operating Procedure. If Penn West issues an ION, it shall be obligated to present a technical presentation to Great Pacific prior to the election deadline of the said ION. We anticipate that Penn West will determine horizontal drilling targets in the near future. All such decisions are strictly within the discreation of Penn West. To participate in the joint well GPI will be required to fund 50% of the drilling costs.
If GPI elects not to participate in the drilling of a joint well, GPI shall assign its 50% working interest to Penn West in the Joint Lands and Penn West shall reserve to GPI a non-convertible sliding scale royalty of 5%-10% on oil and 10% on gas subject to Crown equivalent deductions and paid on 50% of production. The royalty shall be subject to the terms and provisions of the Farmout and Royalty Procedure within the Agreement.
The Property is located in the Red Earth area (see map at http://www.gpicanada.net/operation) where GPI has 5,200 gross acres (4,520 net acres) of oil and gas leases. This area is known to produce crude oil from the Slave Point, Keg River, and Granite Wash formations.
Thal S. Poonian, president of GPI commented that: "We are looking forward to working with Penn West on the development of this property and hope to proceed with drilling in the near future. Penn West, in its March 17, 2011 MD&A, reports a successful drilling completion rate of over 99% for the year 2010."
The Company is currently assessing its available options for raising the capital required to move forward with anticipated drilling with Penn West.
About Great Pacific International
Great Pacific International is a public company actively engaged in the exploration, and development of natural gas and crude oil. The company's holdings are currently over 32,000 gross acres (over 30,000 net acres) in Alberta, Canada. The company's strategy is focused on creating value for shareholders by acquiring and developing petroleum and natural gas leases primarily in western Canada. Great Pacific's shares are listed on the TSX Venture Exchange under the symbol GPI.
On behalf of the Board,
"Thal S. Poonian"
|Thal S. Poonian|| President
Neither TSX Venture Exchange nor its Regulation Service Provided (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Thal S. Poonian, President, at 604-940-9190, toll free 1-877-942-8765 or by email [email protected]
SOURCE Great Pacific International Inc.