Keith,
Here is the letter you were talking about
regards
Joe Sax
TO THE SHAREHOLDERS:
North Turner Valley Project
On December 15, 1999 Stampede Oils Inc., the operator of the North Turner Valley project, was advised by the
Alberta Energy and Utilities Board (EUB) that its application for a drilling license for the Stampede et al TV 11-15-21-3
W5M well had been denied. The EUB Decision stated that all technical aspects of the Company?s application met with
approval, however, for some reason the EUB determined that Stampede?s public consultation process had not been
adequate. In view of the great amount of time and effort that Stampede representatives did in fact spend in
communicating with area residents, this Decision was very surprising and disappointing.
On January 18th a 28-page response to the stated shortcoming was delivered to the EUB by Stampede,
regarding what the Company and its partners consider as serious misconceptions, related to the Company?s actual
public consultation process that apparently contributed to the EUB Decision. The EUB replied to the January 18th
Stampede communication by way of a letter dated February 7, 2000, the context of which is self-explanatory. (A copy of
this EUB February 7th letter and a Shareholder Advisement that was posted on Stampede?s website on February 1,
2000, accompany this letter, along with the EUB December 15, 1999 News Release.)
Bearcat, Stampede and partners are presently assessing the possibility of requesting a Board review of the
December 15th Decision, or initiating a new public consultation process for the submission of a new application for a
drilling license for the intended 11-15 well.
Stampede currently has three additional surveyed surface lease locations in this area. One of them at 14-3-22-3
W5M, located one mile north of the planned Startech well in this area, has had an application submitted to the EUB for a
drilling license and certain related EUB queries are currently in the process of being responded to.
A second surveyed surface location at 14-27-20-3 W5M, pertains to a well to be drilled in 2-34, to offset and
twin an old well drilled in 1943 that should have been completed as an oil well. A Resident Information Package is
currently being readied for distribution prior to the submission of a drilling license application. This surface lease is
located within the boundary of the existing Turner Valley oil field, and therefore the drilling of this well should be able to
commence prior to the end of April. The third surveyed surface lease at 8-9-21-3 W5M, located approximately 2.5 miles
to the north of the 14-27 surface location, will be utilized to directionally drill a well beneath Section 10 (5-10), following
the successful completion of the well to be drilled from the second surface location.
An application for a drilling license for a well in 22-21-3 W5M from the existing 15-15 surface lease for the 11-15
well, is to be made by Stampede as soon as possible after the distribution of an appropriate Resident Information
Package. This application will be for a license to drill an oil well as the Company considers that it now has sufficient
data to support this interpretation.
Stampede has had two separate independent third-party engineering evaluations prepared recently, both of
which support the interpretation of a major oil leg with an overlying gas cap being present in the IMP Berkley Turner
Valley 8-21-21-3 W5M well.
Should the wells drilled in the North Turner Valley area, from the 14-3-22-3 W5M, the 14-27-20-3 W5M, the
5-9-21-3 W5M and the 15-15-21-3 W5M surface locations be completed as successful oil wells, there will then be a good
probability that the Company?s projected possible Coordinated Conceptual Area Development Plan may be realized.
This could result in approximately 41 oil wells to be drilled from only 15 surface locations. This number of surface
locations would be in line with an effort by Stampede and its partners to accommodate the concerns of acreage owners
in the North Turner Valley area, by keeping the number of surface locations, over an area of approximately 61 sq. km., to
a minimum.
An EUB public hearing is scheduled for February 23rd, 24th and 25th at the Priddis Community Hall, regarding
the granting of approval for the drilling license for the Berkley Petroleum Corp., Berkley et al 10-16-21-3 W5M well. This
well is to be drilled into the upper Regional Turner Valley formation, after which it will be drilled horizontally to the east.
The well is expected to commence drilling operations in June of this year.
Bearcat has a minimum 14.9% interest in the P&NG lease underlying Section 16.
South Turner Valley Gas Pool
A pipeline transportation and gas processing agreement has finally been executed by Stampede, as operator of
the South Turner Valley gas pool. Gas production from this pool should commence in the fall of this year.
The Stampede Bcat et al Hartell 4-13-19-2 W5M discovery well is expected to commence production at a rate of
approximately five million cubic feet (5 mmcf) of gas per day and the offset Stampede et al Hartell 11-12-19-2 W5M well,
which is to be deepened with a bottom hole horizontal bore hole component, should produce at a rate of approximately
10-15 mmcf of gas per day. A third well to be drilled later this year has a surveyed surface location at 4-1-19-2 W5M.
This well will have a bottom hole horizontal component (9-2-19-2 W5M) and is expected to produce at a rate similar to
that of the 11-12 deepening well.
This southern gas pool is interpreted to contain a minimum of 130 billion cubic feet (BCF) of proven and
probable recoverable gas reserves underlying the four sections immediately adjacent to the 4-13 discovery well and the
11-12 deepening operation. The drilling of the third well is expected to prove-up a minimum of 60 BCF of additional
recoverable gas reserves.
Three wells are considered to be sufficient, initially, to produce the gas reserves from the South Turner Valley
pool.
Bearcat?s working interests in the South Turner Valley gas pool wells are as follows:
BEFORE AFTER
PAYOUT PAYOUT
1. Stampede Bcat et al Hartell
4-13-19-2 W5M 38.25% 21.25%
2. Stampede et al Hartell
11-12-19-2 W5M 53.10% 42.50%
3. Stampede et al Hartell
9-2-19-2 W5M 53.10% 53.10%
The Canadian Venture Exchange has neither approved nor disapproved the information contained herein.
Bearcat Explorations Ltd. is listed on the Canadian Venture Exchange under the symbol BEA.
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