| ||December 21, 2009|
Thunderbird Announces Two Agreements for $40 Million (US) Third Party Investment in Gordon Creek Property
| ||Thunderbird Energy Corp. has entered into two agreements with independent third parties to invest up to $40-million (U.S.) to further develop Thunderbird's Gordon Creek natural gas property. Both agreements are at the initial commitment, letter of intent, stage and are subject to certain conditions including further due diligence and the execution of more detailed contracts. Thunderbird will manage all field operations to be conducted under both agreements.|
Pursuant to the first agreement a Houston, Texas, based private company has agreed to invest up to $20-million (U.S.) to finance a mutually agreed development plan to earn up to 50 per cent of Thunderbird's interest in its Gordon Creek property. The development plan contemplates the drilling and equipping of up to 25 new wells and the recompletion and equipping of up to six existing wellbores. The company will earn an immediate 50-per-cent working interest in the spacing unit of any newly drilled well or recompleted wellbore and will earn a 50-per-cent working interest in the remaining Gordon Creek lands and production on a pro rata basis as the total commitment of $20-million (U.S.) is financed. Thunderbird will retain ownership of its existing facilities and infrastructure and will charge mutually agreed fees for gas gathering and compression and water treating and disposal.
Pursuant to the second agreement, Thunderbird has committed to participate with a group called the Southwest Regional Partnership (SWP) in its carbon sequestration phase III: deep saline sequestration deployment project to be sited at Gordon Creek. This project will be approximately 80 per cent financed by the United States; the Department of Energy requires a 20-per-cent contribution by the other participants. Other participants include Thunderbird, The University of Utah through the Utah Science Technology and Research Initiative (USTAR) and the New Mexico Tech-Petroleum Recovery Research Center. The development plan and budgets have not yet been finalized, but it is anticipated that the project will represent an investment in excess of $20-million (U.S.) in wells and facilities to be situated at Gordon Creek. Current plans include recompleting up to four wells as dual producing-VSP seismic monitoring wells, recompletion of the existing Gordon Creek injection well to allow for improved injectivity and the concurrent injection of produced water and CO2, plus the drilling of three new deep wells up to 3,650 metres for CO2 production and injection zone monitoring. In addition to the wells, new roads, pipelines and electrical generation facilities will also be required.
The field test portion of the carbon sequestration phase III project is anticipated to have a duration of three to five years. At the conclusion of the field test portion all of the facilities, including the injection and monitoring wells will vest with Thunderbird and continue to be used for natural gas production and water and CO2 disposal. Thunderbird anticipates that there will be future opportunities to use the facilities for commercial CO2 sequestration as Utah's coal-fired power plants are forced to capture CO2 emissions.
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