Canadian Imperial Venture Corp. (VSE:CQV) -- Update on Port au Port No. 1
Discovery Well
Canadian Imperial Venture Corp CQV
Shares issued 22,543,198 Oct 4 close $0.21
Mon 4 Oct 99 Company Sponsored
CANADIAN IMPERIAL VENTURE CORP.
canadianimperial.com
October 4, 1999 - For Immediate Release -
News Release (VSE:CQV)
PRELIMINARY ENGINEERING AND ECONOMIC REPORTS
- PORT AU PORT NO. 1 DISCOVERY WELL -
St. John's, Newfoundland: Canadian Imperial Venture Corp. ("Canadian
Imperial") of St. John's, Newfoundland today released additional
information on their proposed oil and gas development at Port au Port,
Newfoundland announced on Friday, October 1. This has generated a large
amount of interest from across Canada and even outside the Country. It has
also led to requests for the further details especially with regard to the
size of the resource, mode of development, anticipated returns.
The Company emphasizes that it is at the start of the development planning
process and is unable to give precise or detailed information at the
present time. The development will be subject to a Development Plan
approval process by the Government of Newfoundland and Labrador which will
require the submission of a comprehensive project description for scrutiny
by the regulators. The Company anticipates submission of the Development
Plan during the first quarter of next year and first oil by the end of
2000.
The Company is currently working at the level of preliminary development
concepts and analyses with the help of its consultants, the firm of Adams
and Pearson Associates (APA) of St. John's, Calgary and Halifax in the lead
role. Based on geological input from Tectonics Inc. of Calgary, APA has
concluded that the indicated potential recoverable resource of the field is
in the range of 7.9 and 12.6 million barrels oil equivalent (BOE). The
discovery well, Port au Port #1 tested fluids at the following combined
maximum daily rates:
3270 barrels of Oil per day
4.9 million cubic feet of Natural Gas per day
To minimize risk, a staged development is being contemplated with each
successive stage being predicated on success of earlier stages. The initial
stage would include production from the existing well with the following
stage requiring the drilling of a horizontal leg from the existing well
bore. Successive stages could involve drilling two additional horizontal
wells. For scoping purposes, these development scenarios will produce the
following average financial returns:
$12.00 Average Net Back/BOE
29% Average Rate of Return
Given the estimated 7.9 to 12.6 million BOE recoverable resource and a $12
average net back BOE, then the estimated net value of this resource for
Canadian Imperial would be in a value range of:
$95 - $151 Million
APA concluded that "the existing well has proven the existence of reservoir
quality rock, source beds, a trap/seal mechanism and moveable hydrocarbon
on this structure". APA, however, also cautioned that there is risk
remaining in predicting reservoir performance and ultimate recovery at this
early stage.
For Further Information contact:
Canadian Imperial Venture Corp.
Ph: (709) 739-6700 / Fax: (709) 739-6605
canadianimperial.com
No Stock Exchange has approved or disapproved the statements contained
herein.
FOR INFORMATION ON THE FOLLOWING:
* Recent News Releases/News Clippings
* Information about the Company
* Concept Development Port au Port #1 Discovery
PLEASE CLICK HERE
canadianimperial.com
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