Introduction of production enhancement technology through a joint venture with Renergy Petroleum (Canada) Co. Ltd. at Muskwa and Godin The Muskwa will be developed in phases to manage capital exposures and ensure efficient development of the asset.
Renergy will operate the assets under the JOA as the Operator. In return for a 50% working interest, Renergy has agreed to fund 100% of the initial joint operations conducted on the lands up to a maximum of CAD $250 million, which funding shall be deployed at the discretion of Renergy, as Operator, until the earlier of the point when (i) the sum contributed equals the Commitment Cap or (ii) average daily production from the lands over any 20 consecutive days period equals or exceeds 5,000 barrels per day.
Sunshine is pleased that the opportunity in its Muskwa and Godin areas has been recognized by Renergy through this significant agreement to provide both capital and other commitments.