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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: SofaSpud who wrote (12395)	9/21/1998 10:01:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITES / Velvet Exploration Finalizes Permit CALGARY, Sept. 21 /CNW/ - VELVET EXPLORATION LTD. (the ''Company'') is pleased to announce that it has executed a formal permit with the Stoney Nakoda First Nation (the ''Nation'') and the Federal Government of Canada for the exploration and development of approximately 26,850 hectares (67,125 acres) of land (the ''Stoney Lands''). The Stoney Lands are located in the Alberta foothills approximately 50 kilometres west of Calgary near some of Canada's most prolific natural gas fields including Jumping Pound and Wildcat Hills. Under the terms of the Permit, the Nation grants the Company the right to earn all of the subject Lands by the drilling of 4 wells. The Company paid a land bonus of $2.25 million in cash, which amounts to $84.00 per hectare ($33.00 per acre), and has committed to conduct a minimum 25 square mile 3-dimensional seismic program. To date, Velvet has accumulated 170 kilometres of 2-dimensional seismic trade data on and around the Stoney Lands. The Company intends to re-process and interpret these data before commencing its own 3-dimensional seismic program in the last quarter of 1998. The acquisition establishes a new core natural gas area, more than doubling the Company's undeveloped land position and creating a significant land base for the Company in the Alberta foothills corridor. This transaction is consistent with the Company's strategy to pursue growth through the acquisition and development of large contiguous land holdings in close proximity to infrastructure. Velvet is currently evaluating alternatives regarding the development of these Stoney Lands including consideration of strategic exploration alliances. Velvet Exploration Ltd. is a Canadian energy company engaged in the exploration, development and production of natural gas and crude oil. The Company's common shares are listed on the Vancouver Stock Exchange under the trading symbol ''VLV''. The Vancouver Stock Exchange assumes no responsibility for the accuracy of this release and neither approves nor disapproves of the same.