Hi Buckey;
Here is an article which appeared in today's edition of The Evening Telegram:
8/19/99
By CHRIS FLANAGAN Business Editor The Telegram
The oil play on the west coast of Newfoundland is far from over, says the president of the only oil
company drilling for oil on land in the province.
St. John?s-based junior oil company Vulcan Minerals (ASE:VSE) has drilled about a quarter of the
way to its target in the Flat Bay area, company president Patrick Laracy said Wednesday. The well
was spudded last week and is expected to be completed in three or four weeks.
A small drill rig known as a cable rig has reached a depth of about 79 metres towards its shallow
target of 300 metres, Laracy said.
?We?re looking for oil, we?re drilling in the area where we located some oil previously with a mining
rig,? Laracy said.
Vulcan previously encountered oily sandstone 140 metres down at a slim hole just 100 metres from
the current well.
Oil exploration on Newfoundland?s west coast suffered a major setback earlier this year when
PanCanadian Petroleum Ltd. of Calgary encountered only salt water in a $11.5-million well at Shoal
Point. It was the fifth well in recent years to be drilled either onshore or just offshore, and the fourth to
encounter no oil.
Another Newfoundland junior, Canadian Imperial Venture Corp., is conducting seismic work and
plans to drill the west coast this year.
Laracy said Wednesday Vulcan?s target is in a different basin, and is much shallower ? and
therefore must less costly to drill ? than previous wells.
?This is a totally different sequence of rocks,? Laracy said. ?We?re testing a new model in western
Newfoundland.?
The budget for the Flat Bay well is just $200,000, he said.
Vulcan is searching for several small reservoirs. Even a well that produces just 30-50 barrels a day
could be commercially viable here, he said.
The Flat Bay well will also provide valuable geological information for other targets.
?We do know that there?s a petroleum system there,? Laracy said. ?Mark my words, it?s just a matter
of time ? We?re very early in the game in western Newfoundland and the story is far from over, I can
assure you.? |
