FIELD ACTIVITIES / Causeway Energy (Formerly Ohio Resources)
Updates Geochemical Study
CALGARY, ALBERTA--Causeway Energy Corporation (VSE-CUW: formerly
Ohio Resources Corporation) and partners had commissioned
Geo-Microbal Technologies (GMT) of Ochelata, Oklahoma, to conduct
a Geochemical study of Causeway's offshore exploration concession,
located at Kayangel State, Palau. The study is part of Causeway's
ongoing exploration program on the 1.12 million acres concession,
which to date includes the acquisition of 320 kilometers of marine
seismic data defining five exploration prospects. These prospects
have potential of up to 180 MMBbls recoverable reserves from
Miocene aged reef buildups. Producing analogies are found in the
Kasim and Walio fields of Irian Jaya.
Results of the Geochemical study are highly encouraging and
indicate strong evidence of thermogenic hydrocarbons in the
exploration area, consistent with generation and migration of
light oil or condensate. The study results independently confirm,
and greatly expand upon an earlier Geochemical study undertaken by
Texas A&M University in 1987.
During July, field work and data collection were undertaken in the
Kayangel to Velasco Bank Prospect areas of the Palau concession.
Four independent Geochemical sampling methods were utilized for
the Palau survey to provide a balanced data base. Analysis and
interpretation of the data has recently been completed by GMT,
Causeway and a third independent Geochemical consultant. Within
the context of the report, Causeway is encouraged by the
following:
1.) The adsorbed soil gas data from seafloor sediments and the
dissolved light hydrocarbon data in the water samples both show
hydrocarbon concentrations significantly above normal marine
environmental levels and comparable with levels in petroleum
bearing basins. Microbial data, sediment headspace gases,
chromatographic and fluorescence data, while less definitive,
provide additional positive support.
2.) The presence of elevated levels of propane and n-butane (wet
gases) is indicative of the generation and migration of
thermogenic hydrocarbons rather than biogenic derived sources.
3.) Based on a worldwide data base provided through GMT, the
anomalous hydrocarbon concentrations within the sediment and water
samples of the Ngaruang1 Lagoon geochem anomaly are interpreted to
be characteristic of seepage from mature oil source rocks. A
sediment core sample from the Velasco Bank Prospect area exhibited
a fluorescence signature indicating anomalous aromatic
hydrocarbons consistent with light oil or condensate microseepage.
Geochemical exploration methods are an accepted industry tool
utilized by major exploration companies worldwide. Properly
conducted and analyzed, they are instrumental in the
identification and diagnosis of potential petroleum accumulations,
particularly in virgin basin analysis. Geo-Microbial Technologies
Inc. is a well known and reputable Geochemical consulting company
providing worldwide consulting services to many clients, including
major exploration companies. Its principals have numerous
industry references, papers and publications to their credit.
Causeway is highly encouraged by the results of the Geochemical
study and will continue the Palau program with the drilling of an
exploration well scheduled for 1999.
Causeway currently trades on the Vancouver Stock Exchange
(VSE-CUW). It was previously listed as Ohio Resources Corporation
(VSE-OHO). Causeway plans to apply for a listing on the Toronto
Stock Exchange in early 1999.
Certain statements, including statements regarding future drilling
and potential reserves and other information included herein
constitute "forward-looking statements" within the meaning of
applicable laws or regulatory policies. Such forward-looking
statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements described herein to be materially different from any
future results, performances or achievements expressed or implied
by such forward looking statements. Known risks regarding future
drilling and potential reserves include, but are not limited to,
either, rig availability permitting and finances. |
