Curlew Lake has acquired freehold and Alberta Crown Petroleum and Natural Gas rights in a high-impact D-3 reef play in the Fairydell-Bon Accord area of central Alberta. The successful bid at Alberta Crown's land sale resulted in acquiring seven and three-quarter sections (4,960 acres) in the Fairydell area complementing their recently acquired freehold acreage. Preparations are underway for drilling to commence in July 2010.
Curlew Lake Resources has acquired and interpreted seismic data in the Redwater-Fairydell area that has identified numerous drilling targets with multi-zone potential. The area is situated between the long-standing Redwater oil field and the smaller but prolific Fairydell-Bon Accord oil field, 50 miles north of the City of Edmonton. The Redwater field is a Devonian Leduc formation reef play that has produced oil since the 1950s and holds upwards of 850 million barrels of oil recoverable. Prospective lands between the Redwater atoll reef complex and the Fairydell-Bon Accord reef were identified by Curlew Lake using seismic and well control. This effort has resulted in the acquisition of key freehold and Crown lands. The multi-formation prospects include Devonian Nisku and Leduc formations, as well as productive units in the overlying Mannville Group. Curlew Lake's pursuit of high impact prospects makes this area very attractive. Industry has posted an additional twenty-six sections for the upcoming July sales.
The Fairydell area was identified by Curlew Lake as a high-impact project with numerous wells on the main reef producing from the Leduc and Nisku formations in the order of one and one-half to two million barrels of oil per well on 40 acre spacing. The area is less than 50 miles from oil and gas related services at Edmonton and Fort Saskatchewan. Fifty years of infrastructure-building in the area provides adequate battery, pipeline and facilities.
Alberta Crown royalties on new wells, drilling credits on Crown lands, make drilling prospects at Fairydell very attractive and economic. Expected netbacks would result with payout in less than one year.
Curlew Lake Resources has identified a number of drilling locations based on seismic and geological interpretation, and has developed an updated model for reef development in the Fairydell area. Exploration and development drilling have defined the Fairydell area to be a multi-formation project. Optimal field exploitation may be accomplished by excellent pipeline infrastructure, horizontal drilling and down-spacing.
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