Vulcan Minerals makes New Discovery:
It's time that we pulled together some of the salient points of information that can be gleaned from
Vulcan Minerals Inc. recent onshore oil exploration program at Flat Bay, western Newfoundland , as
well as from other exploration in the area.Here are some of these points:
1.First of all, since the early 1800's, the presence of hydrocarbons in western Nfld. has been known
through numerous surface oil seeps in the area,as well as production from shallow reservoirs.Residents
of the area used this oil and oily residues for many purposes, including greasing wheels and fueling
lamps.These seeps prove the existence of mature oil producing rocks,which is a necessary
prerequisite for hydrocarbon accumulation.
2.An exploratory well drilled by Hunt Oil and PanCanadian in 1994 encountered light oil at 11,500 ft.
that flowed at a rate of 1700 bopd and 2.3 mmcfd.
3.Vulcan Minerals drilled a shallow test hole in 1996 that penetrated an oil-bearing formation at
137-152 meters in Carboniferous-aged sediments.
4.In Feb'99, PanCanadian spudded a directional exploration well at Shoal Point to test an offshore
target at depths of 2400 meters and 3300 meters, but failed to discover significant hydrocarbons at
the 3300m level.No mention was made of findings from their primary target at 2400m, and many
industry observers suspect that the company failed to intersect this potential 130 million barrel
structure.
5.On Sept. 15/99, Vulcan Minerals suspends operations at Flat Bay #1 after drilling intersects more
than 100 meters of significant oil shows. These shows consist of the presence of live oil in the
drilling fluid and extensive flourescence in drill cuttings indicative of an oil bearing formation.This is the
first on-shore well on Nfld's West Coast that has successfully encountered significant oil at shallow
depths in the St. Georges Basin...brand new discovery. This well holds the potential for large
pay zones.
6. Flat Bay #1 has confirmed the findings of geological studies that the necessary ingredients for a
hydrocarbon discovery exists in this basin, including a hydrocarbon source,trap(anhydrite) and
reservoir rock.
7.Oil in commercial quantities at Flat Bay #1????Maybe!Only when production casing is installed and
stimulation of the key sections of the reservoir is completed will we really know for sure.
8.Vulcan stopped drilling at 286 meters, 13 meters short of TD.The question remains if basement
rock was encountered, or was the drill still into oil bearing sediment....I'm sure we'll find out at some
time in the near future.
9.Mr Pat Laracy , President and CEO states that his next move will be to prepare to drill an
exploration well on the St. Georges Arch structure approx. 3km. northeast of Flat Bay #1 to an
anticipated depth of 1000 meters(Ordovician aged target).The St Georges Arch is anticipated to
contain three reservoir targets, including the target penetrated in the Flat Bay #1 well. Professor
Elliot Burden of Memorial University states "the structure they're talking about drilling now is a target
I've always found interesting...I've seen it on geological maps for 20 years now."Recall that the Hunt
Oil discovery in 1997 demonstrated the presence of high quality,sweet oil in Ordovician aged
reservoirs.
10.In January,1998 Vulcan was awarded three offshore western Nfld. petroleim parcels (1.2 million
acres), making Vulcan the largest landholder in the entire Nfld. offshore, which includes Western Nfld.
and the Grand Banks area.
11.Imagine the explosive potential of this junior exploration company, should Flat Bay #1 prove to be
economic,or Flat Bay #2 prove up economic quantities of oil when drilled in the near future.Vulcan's
offshore properties alone would be worth a fortune before a well is drilled.
I trust that the foregoing information helps put in perspective the exciting potential that exists for
Vulcan Minerals to "hit the jackpot" in Western Newfoundland. |
