Here's some background on the company:
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Wednesday, June 18, 1997
Completed Processing of an Initial 110 Kilometre Seismic Survey
MacDonald Oil Exploration Ltd., (MACO-CDN) has completed processing of an initial 110 kilometre
seismic survey, following a year of field work on its onshore Block 22 concession in Cuba. The
seismic data, reprocessed by CGG Geophysics of Canada, Calgary, is very encouraging. The data
was examined by MacDonald Oil's geologist and an independent geophysical consultant who have
confirmed the identity of four possible structures on the western portion of Block 22.
Based on these positive results MacDonald Oil plans to complete additional seismic acquisition and a
possible first well later in the year, as funds become available.
The four structures are all fault related roll-overs, with multiple reservoirs within a clastic section that is
most likely Tertiary in age. The reservoirs of all these structures appear to be Tertiary clastics
(sandstones) and perhaps platform carbonates, but not reefal buildups. Because each structure is
faulted, the reservoir would be compartmentalized and since several faults cut to the surface, there is
a possibility of a breached reservoir. Under this Tertiary, good reflections were obtained of possible
upper cretaceous clastics and carbonate reservoir rocks.
Cuatro Caminos structure: The largest of the four structures, the Cuatro Caminos, is a 72
square-kilometre structure with an 18 square-kilometre independent closure. The main thrust fault on
this structure does not cut to surface. A small additional amount of seismic data is needed to confirm
closure in the southwest and east part of the structure to upgrade Cuatro Caminos to a drillable
prospect.
The second structure identified, named Laguna de Guano, is about 10 square-kilometres in size. It
appears to have multiple reservoir enclosures although there are numerous tension faults, some of
which appear to go to the surface. The third structure is smaller and less well-defined than the second
structure. It is not possible to confirm the fault orientations on this structure, from existing data. The
fourth structure is a poorly-defined fault-dependent roll. More seismic is needed to confirm closure on
these three structures.
A surface soil geochemistry survey completed over the seismic lines, has provided encouraging
evidence tending to indicate the presence of heavy gases in clusters within the limits of the four
structures.
MacDonald Oil is Operator of the exploration program for Block 22, a 9,900 square-kilometre
concession in Camaguey, Las Tunas, and Granma provinces of south-east Cuba. It is the largest
on-shore hydrocarbon exploration block in the southern Cuba petroleum province, known to contain
light oil in the Pina field northwest of this very prospective back arc basin.
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Friday, June 27, 1997
Cuban Oil Strategic Merger
MacDonald Oil Exploration Ltd. (CDN-MACO) announced that its parent company MacDonald Mines
Exploration Ltd. (ASE-MMP.A) and its chairman and CEO Frank C. Smeenk, have agreed to
exchange their block of 4 million of the MacDonald Oil's shares (approximately 25% of its issued
capital) for 1 million shares of Cubacan Exploration Inc. (ASE-CCX), in a corporate alliance for
operation of their oil exploration programs in Eastern Cuba. The parties have entered tentative
agreements for mutual operational and technical services for upcoming drilling programs expected to
start later this year. Cubacan's Block 16 and 17 have a number of drillable prospects following
extensive seismic data acquisition and analysis. MacDonald Oil's southerly-adjoining Block 22 has, to
date, yielded four structures with the potential for significant hydrocarbon accumulations, from a 110
kilometre seismic test survey. The MacDonald companies have extensive operating facilities in
Guaimaro, at the heart of the three oil concessions, in addition to support offices in Camaguey and
Havana.
Frank C. Smeenk has been appointed to the board of directors of Cubacan Exploration Inc. and
Cubacan president Allan J. Kent has been appointed to the MacDonald Oil board.
MacDonald Mines announced last week, an agreement in principal to acquire from Bolivar Goldfields
Ltd. (TSE-BVG), all of its Cuban mineral exploration assets in eastern Cuba (adding some 8,000
square kilometres to its initial 2,000 square kilometre holding) also in a share transaction under which
Bolivar president Miguel A. de la Campa and MacDonald Mines president Frank C. Smeenk will be
appointed co-chairmen of MacDonald Mines. A previously announced takeover of MacDonald Mines'
joint venture partner Golden Hill Mining Corp. (CDN-GHMC), which is 42% held by Mill City Gold
Mining Corporation (VSE-MIY), awaits regulatory approval.
None of the TSE, VSE, ASE or CDN have either approved or disapproved the information contained
herein.
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MacDonald Oil Exploration Ltd.
Wednesday, August 27, 1997
First Oil and Gas Shows on South Side of Cuba
MacDonald Oil Exploration Ltd., (MACO-CDN) is operator of the Block 22 oil exploration concession in
south-eastern Cuba. Block 22 is adjacent to the Block VI offshore concession where a new
exploration well named Ana Maria has confirmed the first oil and gas shows on the south side of
Cuba. The Ana Maria well is located on a small island 30 miles offshore from the south coast limit of
the MacDonald Oil Block 22 and is part of the southern Cuba hydrocarbon province known to contain
high quality light oil in the north west of the area.
In an August 14, 1997 news release, Explogas Ltd. one of the Ana Maria well participants, reported,
"The Ana Maria No 1 was drilled to a total depth of 2877 metres. A zone of approximately 10 metres,
between 2621 and 2632 metres, encountered substantial shows of oil and gas. Two tests were carried
out in this zone. These tests produced water, and as a result, the well is classified as dry. Ana Maria
will be plugged and abandoned with the possibility for re-entry.
The well has provided a considerable amount of valuable information. The questions raised prior to
drilling; whether hydrocarbons had been generated in the area and if a sufficient seal existed, have
been answered in the affirmative. The well had oil and gas shows as mentioned above and penetrated
a substantial layer of shale, which serves as an excellent seal. Cores cut in the well together with the
logs that have been carried out will be analysed.
The preliminary opinion is that the well only hit the edge of a structure and that the next step should
be to drill another well on top of it. The final decision about the future work in the licenses will be
based on the joint interpretation by the partners of all the available information."
MacDonald Oil has recently completed the processing of 110 kilometres of seismic data following a
year of field work on its onshore Block 22 property in Cuba. The seismic data was examined by
MacDonald Oil's geologist and independent consultants who confirmed the identity of four possible
structures on the north western portion of Block 22, all in a sedimentary section over 3000 metres
thick, containing clastic and carbonate reservoir rocks.
MacDonald Oil is encouraged by the positive results of both the Ana Maria well and the Block 22
seismic program. Plans are to complete additional seismic definition of the four indicated targets later
this year and possible drilling early in 1998 as funds become available, in this new basin named Los
Angeles, containing strike-slip and flower-structural geology.
MacDonald Oil is the license holder and operator of the exploration program for Block 22, a 9,900
square kilometer concession in Camaguey, Las Tunas and Granma provinces of south-east Cuba. It is
the largest on-shore hydrocarbon exploration block in Cuba. The company currently has 16,300,110
shares issued and outstanding.
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Brian |
