They have started beating the drum already...
CWQ-VSE NEWS RELEASE
CURRENT PRICE: $0.15 - $0.17 52-WEEK RANGE: $0.02 - $0.17
SHARES AUTHORIZED: 100,000,000 SHARES OUTSTANDING: 22,764,526
S.E.C. RULE NO: 82-1978 EXEMPTION NO: 23129E107
July 12, 1999
Mr. Robert Pincombe, President of Curlew lake Resources Inc. (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
negotiation 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 (BOPD) 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 #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 $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 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.
Plans for financing this venture will be announced in the near future.
On behalf of the
Board of Directors,
"Signed"
Robert B. Pincombe
President
Disclaimer: The Vancouver Stock Exchange has not reviewed this release nor
does it accept responsibility for the adequacy or accuracy of its contents.
CURLEW LAKE RESOURCES INC. (CWQ-VSE)
Telephone No. 604-688-9951 - Facsimile No. 604-682-3475
Box 10110, #308 - 701 West Georgia St., Vancouver, BC. V7Y 1K8
Email: dataon@curlew-lake.com / Internet: curlew-lake.com |
