Mercom was established on 15 February 2012 to acquire and develop in situ oil sand properties in Canada.
On 25 February 2012, the Company entered into a Farm-in Agreement to acquire a 50% ownership and working interest in four oil sand leases over the Chard field in Alberta, Canada (the "Chard Oil Sands Leases") in consideration for C$700,000 and for agreeing to fund a further C$2.5 million of exploration and development expenditure on these leases.
The Chard Oil Sands Leases are located in the Athabasca oil sands in north eastern Alberta and comprise of 31 sections covering a total of 7,936 hectares (19,610 acres). Alberta has the largest oil sand reserves in the world and the Athabasca region contains the largest deposit, representing approximately 82% of Alberta's total oil sands resources. Alberta is also well located for the US market, which is the world's largest consumer of oil.
Please note that the Chard Farm-in contract has not been closed and details are given in the Company's regulatory announcements