Canadian Quantum Energy Corp. recently acquired a 50-per-cent interest in an Indian Oil and Gas Canada permit, with Sundance Energy Corp. acquiring the other 50 per cent. The acquisition covers all available petroleum and natural gas rights underlying the Alexander First Nation reserve, located in central Alberta. The Alexander First Nation permit comprises 6,946.17 gross hectares (17,365 gross acres), or approximately 27 sections of land.
A discovery well from a zone adjacent to the Alexander First Nations Project was recently announced. The well of significant interest is 102/10-7-56-26W4, in the Alexander sand zone. In 6.7 hours of swabbing operations (after recovering 100% of the load fluid) the well produced at an average rate of 294 barrels per day of 32 degrees API sweet oil and 213 mcf per day of natural gas or approximately 329 barrels of oil equivalent per day.
The Alexander First Nation lands have the potential for multi-zone light oil and natural gas production at relatively shallow depths with existing infrastructure in the area.
Sundance, as operator, is in the process of configuring an extensive 3-D seismic program that will be shot as soon as possible. Their corporate philosophy is to establish mutually beneficial First Nations relationships built on fairness, respect, and a "leader to leader" management style. Sundance's management has successfully implemented this approach in numerous business transactions with First Nations in Alberta and Saskatchewan.