Farmout agreement between AOS and Crescendo Resources

According to today’s article in the oil & gas journal, ALberta Oil Sands Inc entered a farmout agreement with private company Crescendo Resources, advancing exploration of Algar Lake oil sands.

To earn 51% interest, Crescendo is to fund, drill, core, log and abandon minimum three wells while they will abandon two more wells if they would like to earn 24% additional interest.

They are also to pay AOS $2M to enter the agreement with condition that they have 2 year to earn their interest.

As a result of this farmout agreement, AOS now has 100% working interest in the prospect southwest of Fort McMurray.

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