CURLEW LAKE RESOURCES INC V.CWQ

News - private placement

[hope2]

Langley, BC, Canada, August 25, 2010, Curlew Lake Resources Inc. (the "Company") (TSX-V: CWQ) (Pink Sheets CWLXF) announces that it has completed a non-brokered flow-through private placement of units (the “Units”) at a price of
.05 per Unit for aggregate proceeds of up to $525,000. Each Unit will be comprised of one flow-through common share
and one share purchase warrant (a “Warrant”), each Warrant entitling the holder to purchase one additional common share at a price of
.10 for a period of two years from the date of closing of the private placement. The funds raised will be used for the upcoming drilling program in the Fairydell-Bon Accord area of central Alberta. Due to the exceptional potential risk/return aspects of this project, the Company plans to retain a majority working interest in the well.
The Company has contracted the services of an engineering consulting firm to carry out the drilling and operation of the well. A drill site location as been surveyed, with the landowners consent, and Curlew Lake, as operator of the well, is in the process of applying for an operating and drilling license. Once the licenses are received the Company will issue an additional release with a target drill date.
The project involved acquiring freehold and Alberta Crown Petroleum and Natural Gas rights on a D-3 reef play in the Fairydell-Bon Accord area of central Alberta. The Company now holds nine and three quarters sections (6,240 acres) of land on and around the prospect. The geology and seismic data the Company has acquired and had reinterpreted has identified a number of 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 held upwards of 850 million barrels of recoverable oil. The adjacent Fairydell field has produced 14.2 million barrels of oil and 149 BCF of natural gas to date.
Prospective lands between the Redwater 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 prospect includes Devonian Nisku and Leduc formations, as well as productive units in the overlying Mannville Group.
Curlew Lake’s corporate plan to pursue high impact oil prospects makes this area very attractive.
The adjacent Fairydell field, which our project offsets, has a number of 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. Fifty years of infrastructure-building in the area provides adequate battery, pipeline and facilities.
Alberta Crown royalties on new wells, as well as drilling credits on Crown lands, make drilling prospects such as Fairydell particularly attractive and economic at this time. Expected netbacks on a successful well would result in 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. Optimal field exploitation may be accomplished by excellent pipeline infrastructure, horizontal drilling and down-spacing.
On behalf of the Board of Directors
“Robert B. Pincombe”
President
The TSX has not reviewed and does not does accept responsibility for the adequacy or accuracy of this News Release.
Warning: The Company relies on litigation protection for “forward looking” statements. Actual results could differ materially from those described in the news release a result of numerous factors, some of which are outside the control of the Company.
For additional information or to be added to the corporate mailing list please visit the following page. The company also has online communication and appointment options to schedule online meetings with shareholders and potential investors.
https://www.curlew-lake.com/curlew/contactus.html
For more information contact:
Curlew Lake Resources Inc.
David D. McKee, Chief Financial Officer
Tel: [phone]
Fax: [phone]
Email: [e-mail]