Probe Announces Joint Venture in East Cameron Area

Probe Resources Ltd. an oil and natural gas exploration and production company announce that it has entered into a joint venture (JV) with Petrodome Energy, LLC and certain other parties for the drilling of its East Cameron 37 prospect. The prospect is adjacent to and will be drilled from the same surface location as Probe’s previously announced East Cameron 36 discovery.

The terms of the JV consist of the proportionate reimbursement of Probe’s sunk costs in the East Cameron 36 well including prospect acquisition fees, drilling costs, and development costs to date, as well as the JV partners’ proportionate contribution of well costs and future development costs. Probe will retain a 52% working interest (WI) and a 36.4% net revenue interest (NRI) prior to project payout (BPPO) and a 41.6% WI and a 30.784% NRI after project payout (APPO) in the project area. The project area consists of East Cameron 36, East Cameron 37, and Vermilion 20. Probe will continue as operator of the project area.

The East Cameron 37 well will be directionally drilled under turnkey contract to approximately 12,700′ and will test several Miocene objectives. Total prospective gross resource estimate is 35 billion cubic feet of gas equivalent (BCFE). The well is expected to spud in the next few weeks and approximate duration is 20-25 days.