Canadian Imperial Venture V.CQV.H

Tekoil gets in on Newfoundland act

[scarr]

Tekoil gets in on Newfoundland act with farm-in deal off Canada January 12, 2007 Upstream, The International Oil & Gas Newspaper, 12 January 2007, https://www.upstreamonline.com. All articles provided by Upstream are protected by copyright. Any unauthorized reproduction is strictly prohibited. Texan junior Tekoil & Gas Corporation has farmed in to acreage controlled by Canadian company Ptarmigan Resources off west Newfoundland, writes Iain Esau. Tekoil will pay US$250,000 to Newfoundland-based Ptarmigan for use as a drilling deposit on Exploration Licence 1069 and will drill an onshore-to-offshore exploration well this year to earn a 33.3% stake in the asset. Tekoil will then carry out an offshore 3D seismic programme by late 2008, targeting four features already identified by Ptarmigan. This will gain Tekoil a further 26.7% of the licence, boosting its stake to 60%. The two companies then plan to drill an offshore exploration well, sharing drilling costs on a pro rata basis. However, if Tekoil carries 100% of these costs, it can earn an additional 20% interest in EL 1069 subject to government royalties. Tekoil estimates the cost of all planned work at about $6 million in 2007, $10 million in2008 and $25 million in 2009.