Hi Buckey;
This is an intetresting article from the OilOnline site that features events in Western Newfoundland, including CQV, VUL and American Reserve:
OIL DEVELOPMENT SPURS INTEREST
IN WESTERN NEWFOUNDLAND (10/30/00)
Speculation about the size of Canadian Imperial Venture Corporation's oil deposit on the west coast of Newfoundland seems to be driving the company's share price to record highs. "There is a whole bunch of activity surrounding the development and our company which I think is driving the stock right now," said Kirby Mercer, CIVC's vice-president responsible for investor relations.
The company moved to quell the rumours confirming speculation that a seismic program at its Garden Hill play near Port au Port indicated the size of the oil field there could be much larger than had been thought. The provincial government is expected to rule next month whether the company's development plan for the site is acceptable. Under the plan which the company filed in July, as many as 25 jobs could be created next year tapping the high grade crude and shipping it to the mainland. Eventually, the company would like to erect a small refining plant on the site, and sell the fuel on the local market.
The company is also trying to interest bigger offshore oil players in a patented natural gas recovery and shipment system, which it unveiled earlier this year. The speculation about the value of CIVC's oil deposit near Port au Port seems to be generating some collateral benefit to another St. John's-based junior oil explorer. Vulcan Minerals is working a 70,000-acre parcel in Flat Bay, which it acquired by buying out London Resources earlier this year. Vulcan drilled a test hole on the property last September reporting favourable oil deposits. More drilling is planned early next year.
MORE DRILLING PLANNED FOR WESTERN NEWFOUNDLAND
There is some new onshore oil exploration activity going on near Flat Bay on the west coast of Newfoundland. American Reserve Energy Corporation of Tulsa, Oklahoma has been drilling a well on a block of land that had been tied up in a legal dispute in 1997-98.
"We remain very excited about the hydrocarbon potential of our permit near Flat Bay," says American Reserve president Dale Steinkuehler. "We look forward to being one of several companies that develops western Newfoundland's oil and gas potential."
Meanwhile, Vulcan Minerals, which holds an adjacent exploration permit, has welcomed American Reserve's participation in the western Newfoundland oil play. "The more drilling that takes place gets us closer to a significant commercial discovery," says Vulcan president Patrick Laracy. "If Canadian Imperial goes on production at Garden Hill in Port au Port, it will b very significant for encouraging further exploration."
Vulcan is planning a 1,000-metre well or series of wells in early 2001. Mr. Laracy says if a second production field can be identified and tapped, it would be an important stimulus. "Eight to 10 companies would come in looking for the next one, and as the process builds, you have an oil industry - not another Hibernia, but a valuable industry nevertheless. |
