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On February 28, 2007, Lexcore entered into an agreement to provide drilling equipment and personnel to Japan Canada Oil Sands Limited (”JACOS“) for a drilling program in Alberta, Canada.
Lexcore and JACOS have agreed that each well within the drilling program shall be drilled to a depth of approximately 400 meters, or to the Devonian formation, whichever is deeper, but Lexcore shall not be required to drill any well below a maximum depth of 500 meters.
Coring at intervals specified by GPS location by the exploration company provides the exploration company the best information to determine the quality of the oil sands for drilling. The information provided from the coring is crucial in determining where Steam Assisted Gravity Drainage operation will be most effective.
JACOS employs SAGD (Steam Assisted Gravity Drainage) operations and operates the 10,000 barrels per day Hangingstone project, 50km south of Fort McMurray.
In addition to our current operations, JACOS holds the rights to leases covering approximately 40,000 ha in the Athabasca region for future development. These leases include the Hangingstone, Chard, Corner and Thornbury areas which are expected to contain approximately 2 billion barrels of recoverable oil sands resource.