Here ya GO - NEWS
Canadian Imperial Venture explores Port Au Port oil field potential
Canadian Imperial Venture Corp CQV
Shares issued 22,543,198 Sep 29 close $0.19
Fri 1 Oct 99 News Release
An anonymous director reports
Canadian Imperial Venture has concluded a farm-in agreement with Hunt
Overseas Operating Company and PanCanadian Petroleum Limited to operate a
Western Newfoundland petroleum exploration permit covering about 84,000
acres (34,000 hectares). The permit, covering most of the Port au Port
Peninsula, includes the 1995 Hunt-PanCanadian Port au Port no. 1 discovery
well located about 50 kilometres west of Stephenville, Nfld. During a 1995
production test, the well flowed high quality (51 degree API) crude oil,
natural gas and salt water from a 50-foot pay section in a Middle
Ordovician carbonate reservoir. Combined maximum daily production rates
from two intervals were 3,270 barrels of oil, 4.9 million cubic feet of
natural gas and 1,237 barrels of salt water.
"We are very excited by this opportunity. Based on well information and
geophysical mapping, we believe there may be significant economic reserves
to be recovered from this oil discovery. In doing this we will be building
on a history of oil activity in Port au Port which goes back over 100
years," said Steve Millan, chairman of Canadian Imperial Venture.
Under the agreement, Canadian Imperial will have a right to earn a
100-per-cent interest in the Port-au-Port no. 1 discovery well and will pay
Hunt/PanCanadian a royalty on production from that well bore. Additionally,
Canadian Imperial will have the right to earn a working interest in the
development area. Canadian Imperial also has an option to pursue
exploration targets in the balance of the permit.
As operator of the permit, Canadian Imperial plans to evaluate the
development potential of this oil discovery by testing the Port au Port no.
1 well. Canadian Imperial plans to produce and submit a development plan
for the Port au Port no. 1 field to the government of Newfoundland and
Labrador. Development of the field is subject to provincial regulatory
approval and it could include additional drilling. Preliminary operations
will begin on the property within 60 days, with the potential for first
production in 2000.
In addition to the proposed development of the Port-au-Port field, Canadian
Imperial has the right, until Feb. 1, 2000, to commit to an exploratory
well anywhere in the Permit outside of the development area.
"I am delighted to see the development of this discovery proceeding and the
excellent cooperation between a local independent firm and its
international partners -- Hunt and PanCanadian. I believe this augurs well
for the success of this venture and for the success of future activities of
these players in the region," said Newfoundland and Labrador Premier Tobin.
"While the focus of activity to date has been on the Grand Banks, we are
confident that the Western Newfoundland basin will make a significant
contribution to the growth of the industry in the province and to the local
economy. In this light, today's development announcement is extremely
welcome," said Premier Tobin who attended today's announcement.
In making today's announcement Mr. Millan and Premier Tobin were joined by
the Hon. Kevin Alyward, Minister of Forest Resources and Agrifoods and
member for St. George's-Stephenville East.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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