-- Acceleware (AXE.V) on Wednesday said it entered into a second farm-in agreement for one section of land, with an option for an additional half-section of land, targeting the Mannville Stack oil formation in Saskatchewan.
The company now has a total of two and one-half sections, including option lands, of Lloydminster-area Mannville stack land in its portfolio through farm-in agreements, where it will use its RF XL 2.0 technology to use radio waves to remotely heat and liquefy heavy oil so it can be pumped to the surface.
"The agreement represents another step in the company's stated strategy to build a portfolio of heavy oil production rights and a runway of field opportunities for RF XL 2.0 deployment, while maintaining a disciplined approach to capital deployment," said the company.
Under the agreement, the company will have the opportunity to drill an RF XL 2.0 horizontal well pair in exchange for a gross overriding royalty.
"Upon payout of Acceleware's invested capital, the farmors may elect to convert the royalty into a 40% working interest," said the company.
The agreement also provides the potential to drill additional well pairs on the property, added the company.
"This agreement builds on the company's earlier Mannville-focused farm-in and reflects continued progress in assembling field-ready opportunities," said chief executive Geoff Clark. "These farm-in agreements, and others that we are pursuing, are an excellent opportunity to show the potential of RF XL 2.0 while generating near-term revenue and cash flow from the production of heavy oil."
The company's shares last traded April 27, closing at $0.12 on the TSX Venture Exchange.