Altima commences construction of new Chambers Alberta area pipeline

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7 October 2013, Oil, LPG

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Through a Participation Agreement (the "Agreement") between Acumen Energy Partners Inc. ("Acumen"), and the Company, Acumen has been granted the right to earn a 5% working interest (the "Working Interest") in the Company's 30% working interest in the COPOL ET AL HZ CHAMERS 14-15-41-11 W5M well (the "Well") and the associated Pooled Lands located in the Chambers-Ferrier area of the Western Canada Sedimentary Basin, Alberta (refer to News Release August 26, 2013 for details). As per the Agreement, Acumen and the Company will construct the Line and Facilities, which are anticipated to be completed and the Well placed on production in late October.

Upon completion, the Company and Acumen will receive 100% of the revenue relating to a penalty payout agreement with ConocoPhillips Canada. After which, the payout of the penalty provides that, the Company will retain a 25% working interest in the Well and joint lands (refer to News Release January 24, 2013).

Additionally, the Company is proceeding to survey and License two additional offset wells (the "Wells") to the Altima Chambers 15-35-41-11 W5M well, which was placed on production September 4, 2013. Both offset wells will take advantage of the recently completed pipeline of approximately 6.4 kilometers infrastructure, which tied the 15-35 well to the Baytex header located at 4-4-42-10 W5M (Reference News Release September 3, 2013).

Source: MarketLine

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