Denver-based Basic Earth Science Systems Inc. said last week that through its Basic Canada Inc. subsidiary it has established Legent Resources Corp. — a unlimited liability company — for the purpose of drilling development and exploratory wells in Canada. Of note is the fact that Legent intends to explore a section of the Williston Basin that remains relatively untapped.

Legent said it expects to initially investigate drilling opportunities in the Canadian province of Saskatchewan. Located within the Williston Basin, the province is immediately north of Montana and North Dakota, where Basic is currently active in exploration and production activities. The company said it hopes to utilize its existing expertise to identify and develop new opportunities in this “relatively unexplored” portion of the Williston Basin.

“Basic has previously disclosed its intention to increase its exposure to development and exploratory drilling opportunities,” said Ray Singleton, president of Basic. “We have found that the Canadian portion of the Williston basin provides a number of favorable attributes and believe it is a superior locale to pursue our new strategy while utilizing our existing expertise. We view the establishment of this Canadian entity as the initial, structural step necessary to initiate these efforts.”

Initially, the company said it intends to fund the efforts of Legent from the company’s internally generated cash flow and, if necessary, its new loan facility. However, in the future, Legent may fund these efforts from Canadian sources.

Basic is engaged in the acquisition, exploitation, development, operation and production of crude oil and natural gas. The company’s primary areas of operation are the Williston Basin in North Dakota and Montana, South Texas and the Denver-Julesburg Basin in Colorado.

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