NAFS has leased approximately 30,000 acres of land from the Hutterian Brethren Church of Eagle Creek Inc. Eagle Creek is located approximately 60 kilometers west of Saskatoon, Saskatchewan.
By drilling, backhoeing and testing approximately 250 holes, NAFS has tested 1,100 Acres for frac sand to date.
Norwest Corporation has prepared a NI-43-101 Technical Report which states that there is approximately 8.6 million tons of inferred resource on the land tested to date.
Norwest Corporation has confirmed that the four most common sizes of frac sand in demand by the oil and gas industry has been verified as 20-40,30-50, 40-70 & 70-140 all of which meet API standards.
Critical characteristics of the Property and lease include the following:
Completed core drill program with Norwest Corporation and confirmed inferred resource of approximately 8.6 million tonnes.
Prove out economic resource by continuing to drill and test property and by preparing a Preliminary Feasibility Assessment
Construct facility; commence marketing and production activities; and,continue to explore, test and establish additional frac sand tonnage on our lease.
NAFS is strategically located in an area of numerous tight oil and gas plays. Currently, demand is approximately 3.5 million tons per year in Canada of which 70% is imported. NAFS wants to market its frac sand to the nearby Alberta, Saskatchewan, Manitoba, North Dakota, and Montana basins by eliminating mounting transportation costs and logistic delays. See map on tight oil and gas plays in map section, which indicates NAFS target market.