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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: kingfisher who wrote (5788)	12/29/1998 11:06:00 AM
From: Bearcatbob	Respond to of 24893

R. Here is some excitement: December 23, 1998 TO THE SHAREHOLDERS: The following information is considered to be of significant importance to all Bearcat Explorations Ltd. shareholders. On Monday, December 14, 1998, the Farmor group (Stampede Oils Inc., Bearcat Explorations Ltd., Curlew Lake Resources Inc. and Panda Petroleums Ltd.) in the Turner Valley North farmin block in southwestern Alberta, delivered a Notice of Default to the Operator/ Farmee of the IMP Berkley Turner Valley 2-21-21-3 W5M discovery well, as provided for in the governing Seismic Option Agreement dated December 18, 1996. The Operator/Farmee has breached numerous obligations in conducting the discovery well operation related to pertinent conditions of the aforementioned governing Seismic Option Agreement. The only alternative to the serving of this Notice of Default would have been for the Farmor to tolerate apparent never ceasing and ongoing delays perpetrated by the Operator/Farmee in having the 2-21 well completed and eventually having it placed on production in a reasonable time frame. As requested subsequently by the Operator/Farmee, a meeting was held on Wednesday, December 16, 1998, at which time Stampede, on behalf of the Farmor, recommended that it take over and complete the well in accordance with good oilfield practice in order to have it put on production in the near future. The response to this was negative! The Operator/Farmee has 30 days from receipt of the Notice of Default to commence to remedy such defaults and thereafter must diligently continue to remedy them. The Farmor is hopeful that this Notice will provide the impetus whereby the current operator will endeavour to have the 2-21 well put on production in accordance with good oilfield practice. However, should the Operator/Farmee not remedy or attempt to remedy the defaults, as provided for in the Seismic Option Agreement, the Operator/Farmee's right to earn an interest in the 2-21 discovery well and all related petroleum and natural gas (P&NG) leases, totalling approximately 5,220 gross acres, will terminate. In that event, Bearcat and its partners will take all steps necessary to have the 2-21 well completed in accordance with good oilfield practice and subsequently placed into production early this coming year. Bearcat's interest in this well, and in the other P&NG leases, would increase significantly from the after pay out 11.125% interest currently provided for in the Seismic Option Agreement. The Farmor group is currently holding discussions with other sizeable oil and gas exploration companies regarding participation in the balance of the Turner Valley P&NG leases. Such an involvement would very definitely include a working interest arrangement in the Turner Valley north farmin block. Accompanying this letter is a copy of a recent third party assessment evaluation of the potential of the 11-15 offset location to the IMP Berkley 2-21-21-3 W5M discovery well. Also find a Project Data resume, an updated Turner Valley Oil/Gas Reserves resume pertaining to the P&NG leases in which the Company holds interests, and a Comparative Analysis relating to the logistics of oil versus gas production from the Mississippian Turner Valley formation. This analysis demonstrates that an oil well in this project should pay out all drilling and completion costs in an eight-month period at an unlikely low oil price of $7.00 U.S. per barrel. A revised interpretation of the indicated Turner Valley Devonian Crossfield gas pool delineates in excess of three trillion cubic feet of potential (probable) recoverable gas reserves. With regard to other exploration and development areas, the Company plans to have certain development projects underway early in the New Year, along with the commencement of significant revenues. The advent of substantial new revenues in early 1999, coupled with additional exploration/development drilling will ensure that the asset/market value of the Company should escalate significantly. The Company recently completed a private placement of 4,260,000 common shares in the capital stock of the Company at a price of $0.40 per share, the proceeds of which are for its share of current and ongoing activities in the Turner Valley project. These shares are subject to a one-year hold period in accordance with Securities regulations. MERRY CHRISTMAS and HAPPY NEW YEAR.