VSE did not like the way they crunched the numbers
anadian Imperial required to retract values
Canadian Imperial Venture Corp CQV
Shares issued 22,543,198 Oct 4 close $0.21
Tue 5 Oct 99 News Release
Mr. Steven Millan reports
Canadian Imperial Venture Corp. has released a summary of terms of their
farm-in agreement on the Port au Port Peninsula of Newfoundland.
As previously indicated, the parties to the agreement are Hunt, PanCanadian
and Canadian Imperial. The lands involved are approximately 84,000 acres,
which are held under Permit 93-102 awarded to Hunt and PanCanadian by the
government of Newfoundland and Labrador in 1993 on which the 1995 discovery
well Hunt/PanCanadian Port au Port No. 1 was drilled.
Under the agreement, Canadian Imperial becomes the operator for the farm-in
lands, assuming the functions and responsibilities of the former operator,
Hunt. Specific responsibilities in the agreement include the responsibility
for the development and eventual abandonment of the No. 1 well and the
conduct of a static pressure test and extended flow test to provide further
information on the reservoir.
Canadian Imperial then has the right to produce a development plan, in
consultation with Hunt and PanCanadian, for submission to government, prior
to July, 2000. On acceptance of the development plan, the government will
issue a production lease for the area deemed to overlie the petroleum pool,
the development lands.
If Canadian Imperial complies with the above provisions, it will earn a
100-per-cent working interest in the well bore and production therefrom
subject to a 10-per-cent gross royalty payable to Hunt and PanCanadian. If
Canadian Imperial elects to drill a new well on the development lands
(including a directional well from the existing well bore), the company
will pay 100 per cent of the cost of the well to earn a 50-per-cent working
interest in the development lands. Subsequent developments in the pool will
be on a 50 to 50 working interest basis between Canadian Imperial and
Hunt/PanCanadian.
Outside of the development lands, Canadian Imperial has an option, until
Feb. 1, 2000, to commit to drill an exploratory well at their sole cost to
earn a 60-per-cent working interest in the remainder of the permit.
With reference to the new release in Stockwatch Oct. 4, 1999, the term
"indicated potential recoverable resource" was used. This is not a defined
term in accordance with National Policy 2B and the values presented in the
Oct. 4 news release are therefore retracted as being unsuitable for public
distribution. Similarly, the Oct. 4 news release contained certain economic
projections of net backs, rates of return and net resource values which
were designed for internal use only and are being withdrawn from the public
domain. The company repeats its statement in the Oct. 4 release, that it is
at the start of the development planning process and is unable to give
precise or detailed information at the present time. |
