Alberta Exchange lineup on buy and sale for VUL today
209.5.8.4
I'm going to be buying the Jam Jams soon!
Len what do you make of what CQV"s Press Release today:
October 4, 1999
Preliminary Engineering And Economic Reports - Port Au Port No. 1 Discovery Well
ST. JOHN'S, NF, Oct. 4 /CNW/ - 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 No. 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 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.
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