Petro One Energy Corp. concluded an agreement with Korea Myanmar Development Company Ltd. and its subsidiary KMDC Resources Ltd. The parties arrived at terms that will improve Petro One Energy's financial position by at least $650,000 by the end of the month, according to the press release. KMDC will purchase 8 million units, with each unit being made of one common share of the company and one option to purchase an additional common share within two years of the deal closing.
Additionally, under the agreement, Petro One Energy has the right to drill up to four wells on properties subject to the joint venture agreement it has with KMDC.
Petro One Energy also announced Nov. 5, it has received license to drill its first horizontal oil well on its Milton property in Saskatchewan, Canada. The well is designed to target the Upper Viking formation, which is nearly 33 feet thick, and produce oil from a 2,500 acre-area beneath the sands.
Since 2008, more than 2,000 horizontal wells have been drilled in the area to target the Dodsland Viking reservoir. These oil wells have increased production by 850,000 barrels of oil per month, according to the company's statement. The reservoir has more than 6 billion barrels of oil in reserve.