Onshore Petroleum, Bay St. George, Western NL Royalty Interest
Vulcan Minerals Inc. has pioneered the petroleum exploration of the frontier wildcat Bay St. George basin (1996-2011). The Company accumulated an impressive database of geophysical and geological data and drilled eleven wildcat wells in this unexplored basin. The Company made a shallow oil discovery at Flat Bay and two gas discoveries at Red Brook and Robinsons. Each of these discoveries occurs in tight sandstone reservoirs. As such, they will require significant investment to determine their commercial viability. Vulcan had a joint venture commence in 2008 with Investcan Energy Corporation, a French funded company. In 2012, Vulcan sold its working interests in the project to Investcan. Investcan is currently focused on developing the shallow oil deposit at Flat Bay and evaluating the gas discoveries. Vulcan retains a 2% gross overriding royalty on all petroleum production on the three petroleum permits covering approximately 100,000 acres in the Bay St. George Basin.