Quest Petroleum (ASX:QPN) has completed the consolidation of its shares and options on a 20 to 1 basis as it takes a new production oriented direction with its Canadian oil sands play.
The company will now have 157,453,599 shares on issue and 39,193,497 listed options exercisable at $0.30 on or before 30 June 2016.
Earlier this month, the company entered into the 82,290 acre drill-ready Cold Lake oil sands project in Alberta, Canada.
The Cold Lake region currently produces about 500,000 barrels of oil per day and it's one of three major oil sands deposits in Alberta, which ranks first in crude oil reserves and production in Canada.
Canada has the world’s third largest oil reserves of 173 billion barrels of which 167 billion barrels are located in oil sands.
Quest can earn a 50% interest in the project area from partner First Nations Exploration Company, Keyano Pimee Exploration Company Limited (KPECL), through the funding of low cost vertical well re-entries; drilling new vertical wells; and jointly funding a multi horizontal-well production development program.
The existence of oil at the Cold Lake Project has been verified by previous drilling and extensive log analysis from numerous historic and producing gas wells.
Targets include crude oil in shallow horizons with an average depth of approximately 600 metres.
