St. John’s – Newfoundland – Vulcan Minerals Inc. (“the Company” TSX-V: VUL), announces that it has been advised by the Operator that the testing program on its Medicine Hat gas wells is not yet completed. In late 2006 three new wells were drilled and frac stimulated and one re-entry was frac stimulated. Two additional suspended wells were re-entered and tested gas as reported on October 24, 2006. Preliminary indications from surface pressures on the wells are encouraging but inconclusive for potential production on most of the wells. Specific gas deliverability forecasts for each well won’t be known until downhole flow-rate tests are conducted. At that point decisions can be made as to the economics of connecting the wells into the nearby pipeline system. Because the field operations have not proceeded in a timely fashion, the company is considering it’s options regarding accelerating the pace of the project. Details will be announced as decisions are taken.
The Company announces that the $25,000 financing announced on January 17, 2007 has closed. The financing consisted of 62,500 units issued at $0.40. Each unit consisted of one common share and one-half share purchase warrant. One whole warrant is exercisable into one common share at $0.60 for a period of 2 years. The securities are subject to a 4-month hold period expiring on June 27, 2007. There is no commission payable and proceeds will be used for working capital.
Vulcan is a diversified exploration company focussed on onshore and offshore petroleum in Western Newfoundland. As well, the Company owns uranium and nickel exploration properties in Newfoundland and Labrador that have been optioned out to Commander Resources Ltd and Nortec Venture Corp respectively. Updates on these projects are forthcoming.