Osprey commences Nova Scotia seismic program
Osprey Energy Ltd OEL
Shares issued 7,054,288 Jul 9 close $0.83
Tue 10 Jul 2001 News Release
Mr. R. Gary Malone reports
Osprey Energy's extensive onshore seismic program to locate potential oil
and gas deposits north of Truro, N.S., has commenced. Osprey and its joint
venture partner will be conducting a three-to-four-week program over an
80-mile stretch from Debert to Parrsboro. This area, which has up to 8,000
metres of sedimentary rocks that were deposited about 200 million years
ago, is part of the Maritime basin.
The primary target of the 70 kilometres of seismic lines is the
Pennsylvanian Parrsboro formation. The Lower Parrsboro formation is about
850 metres thick and consists of sandstone and shale assemblages, where the
sandstone members are reported to be 8 to 50 metres thick within the
interval for an expected gross 500 metres of sandstone within the
formation. The Upper Parrsboro is about 1,800 metres thick and is generally
similar to the Lower Parrsboro, the exception being that the sandstones are
thinner and finer grained. The shale units are organically rich, with some
of the shale units emitting a strong petroliferous odour when broken.
The seismic program, which is gathering 6,000-per-cent-fold Vibroseismic
data, has been contracted to Kinetex Inc. They will use large vibrator
trucks instead of dynamite to generate the sound waves. These trucks can
create 50,000 pounds of force, which sends sound waves down through the
bedrock at a rate of five kilmetres to six kilometres per second. The
35-person crew is expected to gather about three kilometres of data per
day.
The seismic shoot will be analyzed with advanced computer technology to
create a subsurface geological profile, which will be integrated with
surface geological data gathered over many years by the Geological Survey
of Canada and the Nova Scotia Department of Natural Resources. The
integrated profile should define structures capable of producing economical
quantities of oil and gas. There are indications that the region has
potential reserves of up to 75 million barrels of oil and 345 billion cubic
feet of gas.
Based on data from a seismic shoot in the early 1980s, both Osprey Energy
and the project operator are confident that the current seismic program
will produce quality data to more precisely define targets for the drilling
of an exploratory well in the structures identified in the previous seismic
shoot.
This venture is but the latest in a growing number of developments in the
Maritime basin which have made this region one of the most active oil and
gas exploration areas in Canada. The activity, both on and offshore, is
generating increasing interest from all over North America.
Osprey Energy also has agreed to issue 20,000 shares valued at $1.80 per
share to settle a legal dispute with a former officer of the company.
The company also is issuing 390,000 one-year employee/director incentive
stock options at a price of $1 in accordance with Canadian Venture Exchange
policy.
WARNING: The company relies upon litigation protection for
"forward-looking" statements. |
