Curlew Lake Resources Inc CWQ
Shares issued 22,564,526 Jul 9 close $0.17
Mon 12 Jul 99 News Release
Mr. Robert Pincombe reports
The company has entered into a letter of intent with Tri-Valley Oil and Gas
(TVOG) and a consortium of junior companies to earn an interest in and to
carry out exploration on TVOG's Ekho project. The Ekho project is a deep
oil and gas exploration project in the San Joaquin Valley, Kern County,
Calif., a prolific oil and gas province. The area of mutual interest, which
forms the basis of negotiation covers approximately 261 square miles
(167,000 acres) and is east of the now famous Bellevue 91 blowout well.
The Bellevue No. 1 well hit an uncontrollable high-pressure gas zone in
November, 1998, at 17,657 feet and blew out and ignited. The well flowed
uncontrolled for two weeks at an estimated rate of 100 million cubic feet a
day (mmcf/d). Under restricted flow the well averaged approximately 10
mmcf/d and more then 400 barrels condensate a day for several months until
it was plugged on May 28, 1999, (source: Bakersfield California Online).
Prior to this blowout, the deepest onshore producing oil well in California
was at 14,570 feet and the deepest producing gas well at 12,576 feet. The
Bellevue No. 1 blowout demonstrated that California's Great Central Valley
has the potential to exploit even deeper reserves of oil and gas and the
flow rates indicate that giant reserves of oil and gas are possible.
The consortium of junior companies participating in the Ekho project and
their respective interests are as follows:
Stock Trading
Company Exchange Symbol Percentage
Aster
Ventures
Corp. VSE ASV 20%
Curion
Venture
Corp. VSE CUV 20%
Berkshire
International
Mining Ltd. VSE BKR 10%
Lucre
Ventures
Ltd. VSE LVD 10%
Consolidated
Bradbury Intl.
Equities Ltd. VSE CBN 5%
Curlew Lake
Resources Inc. VSE CWQ 5%
Pan Ocean
Explorations VSE POE 5%
Prairie Pacific
Energy Corp. ASE PRP 5%
Royal
International
Venture Corp. VSE RIL 5%
Reserved for
other parties 15%
TVOG has a 12.5-per-cent carried interest to payout, which then converts to
a 25-per-cent working interest. To earn its working interest, each
participant will be required to finance its proportionate share of the
reimbursement of certain of TVOG's property acquisition costs and the
proportionate cost of the initial work program. All subsequent work
programs will be carried out as a joint venture and will require a pro rata
financial contribution from each participant or the participant will be
subject to dilution.
TVOG, based in Bakersfield, Calif., has been active in Kern County for more
than 36 years. TVOG began leasing acreage in the AMI in 1997 after
identifying the potential for deep hydrocarbon reserves in the project area
through the interpretation of extensive data. To date TVOG has leased all
or part of 26 sections and negotiations are continuing to acquire
additional acreage in the AMI.
The Ekho project's primary targets will be the Vadder and Upper Phacoides
sandstones, which are part of the Lower Miocene Temblor formation. It has
been reported that the Bellevue No. 1 well is producing from the upper part
of the Temblor formation. The high flow rates in the Bellevue No. 1 well
are attributed to fracturing. Proprietary data held by TVOG indicate that
similar geologic structures, including significant fracturing, may be
present within the Ekho project area.
The similarities that exist between the stratigraphy and structure of the
Bellevue No. 1 and the Ekho project area, coupled with the presence of oil
and gas in surrounding wells, indicate that the Ekho project has the
potential for a discovery similar to Bellevue No. 1.
A work program to test the various targets in the Temblor formation to an
estimated depth of 18,000 feet is currently being prepared. The cost of
this work program and property acquisition is estimated to be $9-million
(U.S.). The estimated cost to be incurred by the company to earn its
interest will be $450.000 (U.S.), which is to be paid within 21 days from
the date of entering into a participation agreement with TVOG. Halliburton
Energy Services, a Fortune 100 company and the world's largest oil field
service firm, will provide TVOG and the participants technical services and
support on a preferred basis during drilling, completion and production of
the Ekho project well. Subject to the parties completing a participation
agreement and a joint operating agreement, it is anticipated that activity
in the field will begin in August, 1999.
Plans for financing this venture will be announced in the near future.
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