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Going for the flow 12/3/03 By MOIRA BAIRD, The Telegram Vulcan president Pat Laracy stands near Cape St. George looking out over Bay St. George. (SUBMITTED PHOTO) Vulcan Minerals Inc. expects to be drilling for Newfoundland west coast oil in the new year. The St. John’s-based junior exploration company raised $2 million this fall to drill two new onshore oil wells and test the flow rate of its discovery well southwest of Stephenville in 2004. Over the next few weeks, the company will select a drill rig. “We expect to be in the field by January,” said Pat Laracy, president of Vulcan. The first order of business will be testing and enhancing the flow of oil from the Flat Bay No. 1 discovery well in the Bay St. George basin. Then, the company starts drilling the first of two new wells. Laracy expects to be drilling Flat Bay No. 2 well by early February. “We should be finished drilling in about six weeks,” he said. Equipment delays “It’s always a function of availability of equipment. The drilling rig might be available, but there are ancillary pieces that you need to pull it all together.” Tenders for the drill rig bids are still coming in, and Laracy says it will take a few weeks to iron out the details of those bids. Cost will be the deciding factor. Vulcan can either use a slim-hole drill used to collect mining core samples, or hire a conventional oil-drilling rig. “We’re putting together a program in an area where you don’t have any petroleum infrastructure. It’s very difficult,” said Laracy. “In Alberta, you pick up the phone and you can arrange a drilling program in a few hours. Here, it takes you months to put together the necessary pieces of the puzzle. That comes with the territory — the fact that you’re developing an area for the first time.” Laracy anticipates a drilling crew of about 11 people, plus additional people to help complete and test the well. Next target close by Vulcan’s next drilling target could be between 700 metres to two kilometres from Flat Bay No. 2. “We have several targets that we could drill, and the priority list will change depending on the results from Flat Bay No. 2,” said Laracy. Vulcan will try to tap into a reservoir untouched by previous wells drilled in the area. Two years ago, American Eagle Reserve Canada Corp. drilled 2.5 kilometres east of Vulcan’s Flat Bay No. 1. Drilled to a depth of 670 metres, the well was abandoned because of drilling difficulties — leaving untouched the main reservoir believed to be beneath a bed of limestone. Busy with gold property On the mining front, Vulcan is also busy with its Little River gold property in central Newfoundland and a nickel-copper property in Labrador. The company has optioned both properties to Nortec Ventures. “They’re committed to spend $3.5 million over five years on both properties combined,” said Laracy. Work on the Little River property, located in the Bay d’Espoir area, could begin this winter, while the nickel property exploration will have to wait until next summer. Nortec, a Vancouver-based capital pool company, is issuing stock and warrants to Vulcan as part of the land-option deal. It is subject to regulatory approval. mbaird@thetelegram.com | ||||||||||||
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