Altima has entered into a Farm-in and Participation Agreement whereby Altima has agreed to participate in the drilling of a 1665 meter (5460 ft.) well on the operators' lands in Northern Alberta.

Altima will pay 33.75% of the costs of drilling through completion to earn a 24.80625% interest in the well and farm-in lands covering an area of 576 hectares, subject to its proportionate share of a 4.7% Gross Overriding Royalty. The farm-in well will test for oil generally present in the area.

The location in the Rainbow Lake area of Northwestern Alberta has new high resolution 3D seismic support, which management expects will enhance the opportunity to encounter better than average production. Permitting has commenced, and it is anticipated the well will be spud the second week of September.

Tags: Altima Energy