Minard Oil Project – Minard, Saskatchewan
On November 21st, 2007 Curlew Lake Resources Inc. announced that it has signed Participation and Joint Operating Agreement with Propel Energy Corp. of Calgary; Curlew Lake agreed to pay 30 percent of the cost of drilling and completing the well for production to earn a 25 percent working interest in any subsequent production, and any future wells on the project. The operator of the project has informed the Company that due to pump issues production from these wells have stopped. Due to uncertainty of the project the Company chose to impair the Minard asset in fiscal year ending Jan 31, 2009
The Company has successfully drilled and completed two wells on the Minard project.
Reconciliation of Proposed & Actual Expenditures
Curlew Lake Resources paid for the initial Minard well in full. To provide funding for the second well and another 3 wells proposed for this project, the Company has entered into an agreement with a private Ontario company. The agreement provides for 100% funding by the private company for the second well and for loans to Curlew to cover its share of funding of the following proposed 3 wells. In return the private company will be granted 50% of Curlew’s interest in all 5 wells on the prospect. This arrangement will allow Curlew to participate with a 12.5% working interest in 5 horizontal wells in the Frobisher zone on the Minard project with no requirement for further equity financing.
On December 20, 2007 Curlew Lake Resources Inc. announced that the Propel Minard Frobisher horizontal oil well in the Minard area of S.E. Saskatchewan has commenced production. Curlew Lake has earned a 25 percent working interest in the well. The Company drilled and successfully completed a second Minard well in Q1 2009. The operator of the project has informed the Company that due to pump issues production from these wells have stopped.
Management will be reviewing potential for additional wells in the future.