* Spuds first of three exploratory wells in Saskatchewan
* Says well has estimated costs of C$1.3 mln
* Says granted 3.2 mln options to officers
Nov 29 Junior oil and gas company Canadian
Energy Exploration Inc XPL.V said it spud the first of its
three exploratory test wells in agreement with a major oil and
gas general partnership in Saskatchewan, sending its shares up
as much as 18 percent.
According to the terms of an Oct. 21 agreement with a
partnership in the Hardy/Minton area of southeast Saskatchewan,
the three wells must be drilled and completed, or abandoned by
March 31, 2011, failing which the company would have to pay a
fine of C$500,000.
The well, which is licensed to a total depth sufficient to
drill to 2300 meters, has estimated costs associated with
drilling and casing, completing or abandoning of C$1.3 million,
the company said in a statement.
Canadian Energy, which is engaged in exploration and
development of oil and natural gas reserves in western Canada,
also said it granted 3.2 million options to officers, directors
Of these, 800,000 options represent the right to purchase
one common share at 39 Canadian cents on or before Nov. 29,
2013, and 2.4 million options on or before Nov. 29, 2015.
The Calgary, Alberta-based company's shares, which have
nearly doubled in the last six months, were trading up 5
Canadian cents at 44 Canadian cents on Monday on the Toronto
(Reporting by Arnika Thakur in Bangalore; Editing by Roshni