Curlew executes participation agreement with Tri-Valley Oil
Curlew Lake Resources Inc CWQ
Shares issued 22,764,526 Aug 24 close $0.15
Wed 25 Aug 99 News Release
Mr. Robert Pincombe reports
Curlew Lake Resources has executed a participation agreement and a joint
operating agreement with Tri-Valley Oil and Gas. In order for Curlew Lake
to earn its working interest in TRIL's Ekho project, the company is
required to finance 5 per cent of the initial $9.5-million (U.S.) authority
for expenditure (AFE). The AFE includes a $1-million (U.S.) contingency.
The Ekho project is a deep oil and gas exploration project in the San
Joaquin Valley, Kern county, Calif., east of the now famous Bellevue No. 1
well. It is expected that the first Ekho project well will be spudded in
the third quarter of 1999. TRIL will be the operator and will conduct all
drilling and production operations on the Ekho project.
Pursuant to the terms of the participation agreement, TRIL will be carried
for 12.5-per-cent interest through drilling and completion. After
completion, TRIL will pay its proportionate share of well costs. After the
partners are paid back their drilling and completion costs from production,
TRIL will back in for an additional 12.5 per cent to bring its total
working interest to 25 per cent. The company must participate in the first
well in the project to earn the right to participate in any further wells
and must further participate in the first three wells in order to earn the
continuing right to participate on a heads up basis in other wells drilled
within an area of mutual interest (AMI).
The Ekho project area is in the Southern San Joaquin Valley, Kern county,
Calif., one of North America's richest and most historic petroleum basins.
The valley district has produced 11.4 billion barrels of oil and 7.1
trillion cubic feet of gas from 22 giant fields and dozens of smaller
fields since the early 1900s. TRIL started leasing acreage in the project
area in 1997 and has to date, leased approximately 10,000 acres within the
AMI.
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 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. |
