Stock Symbol: TSX:VUL
Shares Issued: 43,589,301
St. John’s, Newfoundland – Vulcan Minerals Inc. (“the Company” – TSX-V: VUL) provides the following update:
Corporate:
The Company is planning one of its busiest years for 2009. A significant program of drilling will occur in the onshore Bay St. George Basin in Western Newfoundland as a culmination of several years of seismic work and shallow drilling. The program is being financed through a joint venture with Investcan Energy Corporation (Investcan). Vulcan’s 50% working interest share will be carried 100% by Investcan up to an expenditure of $15,000,000. The company has no debt and sufficient working capital to carry out its exploration program. The Company is engaged in frontier exploration, focussed on exploring large scale opportunities requiring vision and long term commitment.
Robinson’s #1 – Bay St. George Onshore:
The joint-venture has selected a site at Robinson’s #1 for the deepest well ever drilled in the Bay St. George basin. Planned depth is 3600 metres. Drill pad construction has commenced. A project manager, Mr. Shane Halley, an engineer with significant petroleum and project management experience has been hired to oversee the company’s drilling operations.
Procurement work is well underway with all key goods and services in the process of being acquired. The timing for drilling will be dictated by the availability of drilling equipment. This will result in commencement of drilling in the winter or spring. The target is a seismically defined structure containing several prospective reservoirs.
Additional Onshore Wells – Bay St. George:
As part of the 2009 drilling program two additional wells are planned in the 1500-2500 metre depth range. The joint-venture has selected and prioritized several potential drill locations. Each planned location will test a different geologic environment.
Flat Bay – Shallow Oil Deposit Onshore:
The company is reviewing the prospects of completing a two hole coring program in the Flat Bay oil deposit. The purpose is to scout for natural fracture systems within the deposit which would enhance reservoir transmissibility of hydrocarbons. A drilling program is being prepared and rig solicitation is underway. These holes would be small diameter core holes utilizing a mining rig. Maximum vertical drill depths would be 150 metres and are designed to retrieve reservoir information. All expenditures would be funded by the Bay St. George joint venture.
Offshore Labrador:
The company and its 50% working interest partner, Investcan are in receipt of exploration licence 1107 from the Canada Newfoundland and Labrador Offshore Petroleum Board. This licence was granted as per the successful competitive bid as described in the September 11, 2008 news release. The licence covers 584,466 acres of offshore Labrador and is valid for a six year Period I term subject to extension to a three year Period II term if a well is drilled in Period I. The exploration licence offsets two significant gas discoveries. Several seismic leads initially identified on the licence are being further evaluated.
Parsons Pond:
The company owns non-operating working interests varying from 7.39% – 18.57% in three onshore petroleum permits at Parsons Pond, Western Newfoundland. The permits require drilling by February 12, 2010. Leprechaun Resources Ltd., a private Alberta based company has taken over operatorship of these permits and is currently raising funds for a 2009 drilling program. Vulcan intends to participate according to its working interest level. The scale of the drilling program will be decided by Leprechaun’s success in fund raising. The Parsons Pond area covers approximately 100,000 acres of Cambian-Ordovician platformal rocks where numerous oil seeps occur at surface and seismically defined drill targets occur at depths up to 4000 metres.
NWest Energy Inc. – Offshore Western Newfoundland:
The company owns approximately 19% of the issued and outstanding shares of NWest Energy Inc. (TSX-V: NWN – NWest). NWest owns a 100% working interest in approximately 1,600,000 acres offshore western Newfoundland covering Cambian/Ordovician/Silurian platform and foreland basin rocks with petroleum potential. NWest is currently acquiring seismic data on key portions of its exploration licences towards firming up drill targets and is actively seeking joint venture partners to advance a drilling program.
Additional information on the resource potential of these projects is provided on the Company’s website www.vulcanminerals.ca by way of project descriptions and news releases.
Vulcan is a diversified junior exploration company focussed on petroleum exploration in the under-explored Western Newfoundland and Labrador area and also holds mineral interests in areas strategic to its operations in Newfoundland and Labrador.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company’s expectations. Certain risk factors may also affect the actual results achieved by the Company.
There can be no assurance that forward-looking information will prove to be accurate. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.