RYLAND OIL ROYALTIES
Eternal Energy owns a five percent (5%) gross overriding royalty interest on all production from each well drilled on the 345,212 gross and net Canadian acres owned by Ryland Oil Corporation. In addition, Ryland has agreed to pay to Eternal a US$250,000 spud fee for each of the first eight wells drilled in the project. To date, six wells have been drilled earning Eternal Energy $1.5-million in spud fees.
EERG also maintains a ten percent (10%) working interest in 11,152 of Ryland’s 20,648 gross and 12,185 net acres of Northern US properties. Eternal Energy is a joint venture partner for the exploration and development of these prospects.