Curlew Lake Resources Inc.

Curlew Lake Resources Inc.

October 20, 2010 09:10 ET

Curlew Lake Resources, a Junior Exploration Company, Plans to Operate and Drill a Significant Oil Target Located on a Central Alberta Reef System Early Next Week

LANGLEY, BRITISH COLUMBIA--(Marketwire - Oct. 20, 2010) - Curlew Lake Resources Inc. (the "Company") (TSX VENTURE:CWQ)(PINK SHEETS:CWLXF) announces that it has received a license to drill a New Pool Wildcat on its Fairydell-Bon Accord prospect in central Alberta. The Company is operator and has a majority working interest in the well. The Company will retain a 53 percent working interest in the well before payout and a 64 percent working interest after payout. Site preparation will commence tomorrow and drilling next week. The drilling program is estimated to take about one week.

Wells in an adjacent field have recovered up to 2 million barrels of oil per well on 40 acre spacings, which at today's value gives over $40 million in ground value per well. Since the Company's current market capitalization is below $6 million, the potential value of even a moderately successful well can be significant. The results of this initial well will help to confirm our geological model, and could indicate a very productive area capable of a multiple well program. With our interest in the project, it is the opinion of management that this area has the potential to contribute considerably to corporate value.

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 due to excellent pipeline infrastructure, horizontal drilling and down-spacing.

The Company is also issuing another 200,000 stock options each to Michael Berisoff as Explorations Manager and Jim Stapleton as Operations Manager, pursuant to its 2009 rolling stock option plan, at an exercise price of $0.10 per share. All options are valid for five years. These options vest immediately.

On behalf of the Board of Directors

Robert B. Pincombe, President

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.

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