Vulcan Minerals Inc.: More Oil at Flat Bay in Western Newfoundland
(firmenpresse) - ST. JOHN'S, NEWFOUNDLAND -- (Marketwire) -- 11/11/11 -- Vulcan Minerals Inc. ("the Company")(TSX VENTURE: VUL) is pleased to announce it has completed the drilling program at the Flat Bay project in western Newfoundland. The program has resulted in a significant expansion of the areal extent of the Flat Bay oil deposit. The original program proposed 5 holes for a total of 750 metres but the final program consisted of 6 holes for a cumulative total of 1673 metres. The target reservoir horizons of the Ship Cove Fm. and the Fischell's Brook Fm. were oil bearing in 3 of the 6 holes. Each hole was continuously cored and bottomed in oil bearing Fischell's Brook Fm. Core recovery was near 100%. Oil is bleeding from the core over the Ship Cove-Fischell's Brook gross intervals as follows:
A map showing the hole locations is available at
The drilling depth of the core holes was limited by rig capacity and regulatory requirements. As a result it was not possible to drill through the entire reservoir thickness. For reference, the gross thickness of the oil-bearing Fischell's Brook Fm. in the Flat Bay #1 discovery well was approximately 100 metres. Hole #6 is located 2.0 kilometres south of Flat Bay #1. Hole #7 is 2.5 kilometres south of Flat Bay #1. Hole #8 is 1.5 kilometres northeast of Flat Bay #1. The Ship Cove-Fischell's Brook Fm. was deeper than expected at Hole #5 and was beyond the depth capacity of the rig. However, minor live oil shows were encountered in a sandy lense within the anhydrite which overlies the unpenetrated target formations. Holes #4 and #9 were drilled approximately 1 kilometre west and updip of the discovery hole Flat Bay #1 and encountered shallow basement without any oil bearing target intervals, though live oil shows were encountered in basement fractures in both holes. These holes will assist in determining the oil-in-place volumes for this deposit.
The main purpose of the current program was to obtain a distribution of core samples from the reservoir to better understand the spatial and facies variation of rock properties and oil saturations. The services of Weatherford Laboratories were retained onsite to preserve representative sections of core for detailed fluid analysis. The current data acquisition along with previous drill results will be reviewed by a qualified reservoir engineering group towards formulating a pilot project to extract the oil from the Flat Bay pool. In conjunction with this analysis it is expected that a well will be drilled geologically down-dip of core holes #7 and #6. An evaluation of the optimal location for this well is underway and is planned to be drilled as soon as possible in 2012.
The shallow Flat Bay oil deposit occurs primarily in low permeability conglomerates and sandstones. Although the oil is light, at 34 degrees API, it has a pour point of 9 degrees Celsius, which exceeds the reservoir temperature at the shallow depths currently intersected. Therefore, the oil does not flow freely. An input of energy into the shallow reservoir will be required to stimulate flow. Results from the current drill program will assist in designing an oil recovery method. The project is a 50/50 joint venture with Investcan Energy Corporation.
The Company advises that it has been served with a statement of claim by Geophysical Services Incorporated wherein it is claimed that the Company, as a co-defendant with Investcan Energy Inc., has committed a copyright infringement. The claim relates to an allegation that accessing offshore Labrador seismic data, which is released to the public by the Canada Newfoundland and Labrador Offshore Petroleum Board (CNLOPB) after the relevant statutory privilege-confidentiality period, is a breach of copyright. The Company is of the opinion that this claim is without basis and vexatious. The Company will fully defend its interests and take all other actions available to it. Related cases have been initiated by the same claimant against the CNLOPB and the National Energy Board for, amongst other things, declarations that the regulations allowing public access to seismic data are invalid and in violation of copyright.
The Company advises that it is formulating a listing application with the TSX Venture Exchange for Red Moon Potash Inc. The Company is in discussions with potential financing sources towards funding the 2012 work program as per the technical report filed pursuant to National Instrument 43-101. The proposed 2012 work program will consist of a drilling program to delineate and explore the Captain Cook Potash discovery in the Bay St. George basin of western Newfoundland.
Vulcan is a diversified junior exploration company focused on petroleum exploration in the under-explored western Newfoundland and Labrador areas and also holds mineral interests in areas strategic to its operations in Newfoundland and Labrador.
There can be no assurance that forward-looking information will prove to be accurate. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
Shares Issued: 57,176,129
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.
Contacts:
Vulcan Minerals Inc.
Patrick J. Laracy, President
Gerri A. MacNeil, Business Manager, Investor Relations
709-754-3186
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Datum: 11.11.2011 - 17:13 Uhr
Sprache: Deutsch
News-ID 87033
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Kategorie:
Mining & Metals
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