Canadian Imperial Venture V.CQV.H

Harry's River deal

[osmosis]

One thing to keep in mind reference Harry's River. Unlike the Port-au-Port #1 sidetrack which is drilling into a known reservior, Harry's River is a true wildcat well. Kirby was asked some time ago why they are going to drill Harry's River first rather than doing seismic on it. His reply was that using slim hole technology it was just as cheap to drill as to do the seismic, and obviously you learn much more about the geology with the drill. If memory serves me correct,he said the cost to drill was $300,000. This is then a very smart deal for CQV in that they have someone else pay to drill Harry's River and if it is a dry hole, so what. BUT if they hit it is a windfall for them. Sounds like a win-win situation to me.