Hi jerry;
A couple of key points further to Vulcan's press release of 10/11/00 that may help put things in
perspective:
1.Vulcan now has a 100% working interest in the Flat Bay permit after completing the acquisition of
London Resources...this would serve to make matters less complex in the event of a joint venture to
conduct further exploration.With the current strength in the price of oil, and the continuing focus of
major oil companies on the hydrocarbon potential of Newfoundland, I am very optimistic these
factors, in combination with others, will enable Vulcan to land a JV deal on this permit.
2.A private US company named American Reserve is currently conducting a multi-well drill program
in the St. Georges Basin adjacent to Vulcan's Flat bay permit.It is my contention that private
companies only spend cold-hard-cash in exploration when then level of risk is cut to the bone. We an
be sure that Vulcan's significant oil shows in their first two wells at Flat Bay, was a contributing factor
to American Reserves decision to drill their property(tens of meters away).
3.While attending Vulcan's AGM this past June, I had the opportunity to listen to Mr. Pat Laracy's
presentation on the company's West Coast prospects.He was very encouraged and excited with the
results of Vulcan's first two test wells on their Flat Bay permit.The planned well for the next round of
drilling on the seismic structure 4km. from well #2 will be 1000 meters deep and will test three
seismic targets...in other words three zones in the one well.From what I recall, the first two
targets together represent approx. 20 million barrel potential.....with the third target believed to be the
deeper Ordivician structure that Hunt Oil and Pan Canadian intersected in 1994 and became known
as the Port au Port discovery.....hence, the reason for Vulcan shareholders to be excited and
optimistic with the enormous potential here.Professor Elliot Burden of Memorial University states
"the structure that Vulcan is talking about drilling now is a target I've always found interesting....I've
seen it on geological maps for 20 years now."
4.At a time when major oil companies are jockeying for prime offshore oil acreage on
Newfoundland's offshore, Vulcan Minerals is in the enviable position of being the largest
landholder in the entire Nfld. offshore, including Western Newfoundland and the Grand Banks
area.Vulcan holds three offshore petroleum parcels totalling 1.2 million acres
5. Look for attention to shift to the province's West Coast with the exploration currently underway by
American Reserve, continued exploration in the Deer Lake basin by a nother private company, and
oil production by Imperial Ventures in early 2001( from the recently acquired Port au Port discovery
well that was drilled by Hunt in 1994).Vulcan has committed to drilling a multi-well program on their
Flat Bay permit in early 2001.Further drilling success in this area will be the catalyist that brings the oil
giants to the area in a big way.
I expect to see some interesting and exciting developments coming out of Newfoundland's West
Coast in the coming months. |
