CALGARY, ALBERTA--(Marketwire - April 26, 2012) - Drako Capital Corp. (the "Corporation" or "Drako") (TSX VENTURE:DKC) announces that, further to the press release of the Corporation dated April 20, 2012, Drako has participated in the recent drilling of the 15-19-42-15 W5M horizontal Cardium well in the Stolberg area of Alberta (the "15-19 Stolberg Well"), which is currently being tested.
Drako participated in the drilling of the 15-19 Stolberg Well in substitution for the 6-29 Cardium well, also in Stolberg (the "6-29 Stolberg Well"), which was one of three test wells provided for in the farmout and participation agreement dated September 14, 2011 ("Farmout and Participation Agreement") to which Drako is a party, all as more particularly set out in its press release dated December 14, 2011 and in subsequently filed disclosure documents. In connection with the operator's ongoing drilling program in the Stolberg area, Drako was advised in early March 2012 that the 6-29 Stolberg Well will not be included in the subject drilling program and participation in the 15-19 Stolberg Well was offered in substitution, which was accepted by Drako. Drako has spent a total of $709,000 to date pursuant to its participation in the 15-19 Stolberg Well, comprised of $661,000 in drilling costs and $48,000 in completion costs.
Drako's participation in the 15-19 Stolberg Well is on substantially the same terms as those which applied to the 6-29 Stolberg Well under the Farmout and Participation Agreement, namely payment of 12% of the costs of drilling and completing, or abandoning, to earn an undivided 8.0% working interest in and to all petroleum and natural gas in the Cardium formation, unencumbered other than for Crown lessor royalties.
The Corporation will provide further details in respect of its participation in the 15-19 Stolberg Well, in due course as further developments are realized.
Drako is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information:
Robert J. Dales
President & Chief Executive Officer
(403) 690-3884