Curion Venture Corp. (the 'Company') is pleased to announce that it has entered into a letter of intent with Tri-Valley Oil and Gas
Message 10472311
Company: Curion Venture Corp.
Exchange/Symbol: VSE:CUV
52 Week High/Low: $0.65/$0.10
July 9, 1999 Close: $0.62
Shares Outstanding: 12,639,147
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Dated: July 12, 1999
VSE Symbol:CUV
NEWS RELEASE
Mr. Eugene Larabie, Curion Venture Corp. (the 'Company') is pleased to
announce that it 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 located in the San Joaquin
Valley, Kern County, California, a very prolific oil and gas province. The
area of mutual interest ('AMI'), which forms the basis of negotiations
covers approximately 261 square miles (167,000 acres) and is located east
of the now famous Bellevue # 1 blowout well.
The Bellevue #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
per day (MMCFD). Under restricted flow the well averaged approximately 10
MMCFD and more than 400 barrels condensate per day (BCPD) for several
months until it was plugged on May 28, 1999 (Source: Bakersfield
Californian 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 #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 (the 'Participants') participating in
the EKHO Project and their respective interests are as follows:
Company Stock Exchange Trading 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% carried interest to pay-out which then converts to a 25%
working interest. To earn its working interest, each Participant will be
required to fund 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.
Bakersfield, California based TVOG, 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 Vedder and Upper Phacoides
sandstones, which are part of the Lower Miocene Temblor Formation. It has
been reported that the Bellevue #1 well is producing from the upper part of
the Temblor Formation. The high flow rates in the Bellevue #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 #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 #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 $ 9,000,000
U.S. The estimated cost to be incurred by the Company to earn its interest
will be $1,800,000. 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 oilfield
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.
Curion Venture Corporation announces a financing by way of convertible
debenture. The convertible debenture is for up to $2.5 million for 2
years. Terms provide for an interest rate of 10% per annum, with
convertibility at $0.50 per share the first year and $0.60 the second year.
Upon conversion, the holder will receive a share and a share purchase
warrant. The warrants will be exercisable at $1.00 the first year and at
$1.15 the second. Funds will be used for a 20% interest in the herewith
announced Ekho exploration prospect outside of Bakersfield, California.
Finders fees are payable with respect to the above project and financing,
as allowed under VSE policies.
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