Trans Canada Gold Corp. provided an operational update on a one-well Farmout Agreement with Croverro Energy Ltd, of Calgary, Alberta, ("Croverro") to drill a multi-lateral horizontal oil well. The well is in close proximity to Lloydminster, Alberta. The lands for the well are currently controlled by Croverro. Under the terms of the negotiated agreement, Trans Canada (Farmee) must pay 25% of Croverro's share of the cost to drill, complete and fully equip or abandon the well to earn an 18.75% net working interest. Croverro ("Farmor"), will be carried for a 6.25% interest. The multi-lateral horizontal well is based on similar wells drilled in the Sparky Oil Formation. The well is planned to have over 3000 m of Sparky formation open for production. The well scheduled to be drilled in the first quarter of 2023, is currently experiencing some minor delays due to extreme cold weather experienced in December and rig availability. Trans Canada, after successfully drilling and equipping the first multilateral horizontal well will have the
first right of refusal on an Area of Mutual Interest (AMI) of approximately one mile in each direction from the test well. Additional wells within the AMI will, if the Company elects to participate, will be drilled on a non-promoted basis with Trans Canada paying 18.75% to earn 18.75%. Additionally, Croverro currently has a second prospect in the AMI that is in the development stage. Also, Croverro may present additional drilling opportunities to Trans Canada, as opportunities are developed and lands/minerals are obtained in the greater Lloydminster region of Alberta and Saskatchewan.