Prince Edward Island
In September 2006, Maxim Resources Inc. entered into a working interest agreement with Shannon International Inc. (SHIR) of Dartmouth, N.S., an arm's-length public oil and gas and technology company, to acquire a 50 percent working interest in all the rights, title and interest in Prince Edward Island Oil and Gas permits numbered 02-01, 04-01 and 04-04 and certain seismic data. In exchange for the working interest in the three License blocks, Maxim paid $320,000 (CDN). This payment has earned Maxim a 50 percent working interest in these Blocks, rights to certain Crown Reserves, and three major plays to discover; Conventional Shallow gas – Less than 2,000 meters, Deep Sub-salt ~ Oil & Gas, and Coalbed Methane.
The licensed blocks comprise about 376,000 acres primarily onshore in Price Edward Island. To date over $7.5 million (CDN) has been spent in identifying large oil and gas structures for drilling and development. This was achieved by acquiring, reprocessing, and interpreting over 1,200 kilometers of new 2D SEISMIC. Regional and local geological studies have identified several potential reservoirs of significant thickness and lateral extent at depths of less than 2,000 meters. Four prospects have been identified on the permits and mapped. These plays are diversified in structure, deposition and formation.
Prince Edward Island, located on the east coast of Canada in the Gulf of St. Lawrence, lies on a large sedimentary basin that may have significant reservoirs of natural gas. In fact, exploration activities have identified the existence of these potential reservoirs, including a significant discovery made offshore in East Point, PEI. However, Prince Edward Island's hydrocarbon potential has yet to be fully assessed as, to date, only eighteen exploratory wells and one re-entry well have been drilled on and around the province.
The permits are located within the Magdalen Basin. The Basin is generally located beneath the Gulf of St. Lawrence, extending south of the Northumberland Strait, encompassing the adjacent land areas of PEI, New Brunswick, Nova Scotia and parts of Newfoundland. The basin has not been subject to any significant exploration and remains one of the few untapped natural resource regions in North America.
Multi-zone drilling prospects have been identified on various permits. All of these targets are at less than 2,000 meters, providing low cost drilling opportunities.
The company is currently evaluating options to advance the PEI property.
