Primary Petroleum is a publicly traded growing oil and gas company actively engaged in exploration and development activities in Montana and Alberta with its head office located in Calgary and a representative office in Shelby, Montana. Primary's management and technical teams include accomplished oil and gas exploration and development personnel, with extensive experience. The Company's mandate is to continue to aggressively acquire oil & gas prospects of merit in Sedimentary Basin of the Western United States and Canada with a focus on acquiring assets in Montana and the surrounding states whereby Primary Petroleum maintains control of its own land plays and drilling operations.
The Company has some activity and production in Alberta, along with its primary focus of oil and gas exploration and development in Montana and to-date has acquired over 335,000 net acres of mostly undeveloped land.
Primary's current mandate of exploration and development in Montana will provide excellent upside for the Company and its shareholders because of:
- Montana is located in the Western Sedimentary Basin, which is world renowned for oil and gas discoveries.
- Its access to large acreages of contiguous and prospective land at very reasonable lease rates. To-date leasing rates in Montana are approximately 10% of leasing rates in Alberta.
- Overriding royalty rates in Montana range between 12.5% and 16.67%. The revised Alberta royalty schedule that is expected to commence on January 01, 2009 has oil and gas royalties between three to four times greater than what Primary will be assessed in Montana.
- The costs associated with drilling, operating and related services in Montana are less than they are in Alberta.
|
