To: Vulcan Shareholders
Fr: Len Hynes
Title: ANOTHER NFLD. OIL PLAY
Here is a revised version of my August posting concerning the West Coast Oil Play...Pan Canadian...and then Vulcan Minerals.
The East Coast(Hibernia et al.)Oil Play has attracted world-wide attention, especially
during the construction of the giant Hibernia platform, the transport of this huge structure
to the Grand Banks, and the subsequent pumping of the first oil from this giant oil-field.
With Pan Canadian's announcement on Aug/29/98 of it's resumption of drilling on Nfld's
West Coast scheduled for Jan/99, look for this area of the province to once again
attract the attention of investors. In 1995, Pan Canadian and partner Hunt Oil struck oil
at an on-shore well located at Garden Hill near Cape St. George, and subsequent
flow-test results yielded 5012 barrels of oil per day,9.19 million cu.ft. of gas per day,
and 2734 barrels of water per day over a 9.5 day test period.
According to the latest story carried in The Express (Jan/99), Pan
Canadian will be spending $10 million to drill a directional well beginning on land at
Shoal Point and going out under Port au Port Bay. There is a lot of speculation that
other major oil companies i.e. Norcen Energy , with land in the area will very soon
announce drill plans.
Bring on VULCAN MINERALS INC......this junior company is now one of the largest
landholders in the area with two onshore parcels, and three recently acquired large
off-shore concessions.In Nov/96, Vulcan drilled a test hole to 500 ft. on it's Flat Bay
property , and reported that the hole penetrated a petroliferous conglomerate from 450
to 500 ft., which bled light brown, non-biogradeable oil over the 50 ft. interval.Since
then Vulcan has conducted seismic surveys over this property, and several drill targets
have been identified.
Vulcan has already committed to it's shareholders to drill an onshore well for petroleum
on the Flat Bay property during the fall of this year.
With Pan Canadian's latest announcement to commence drilling in the coming days, and the
committment by Vulcan to drill in the first half of this year, the West Coast promises to be
a "breath of fresh air" for shareholders and potential investors in this dismal resource
market.
The stage is set: Let the Oil Play begin!
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