St. John’s – Newfoundland – Vulcan Minerals Inc. (“the Company” TSX-V: VUL), is pleased to announce that it has received from NWest Energy Inc. (NWest) the results of a NI51-101 compliant petroleum resource assessment of NWest’s offshore western Newfoundland exploration licenses by Sproule Associates Limited of Calgary, Alberta (Sproule). The Sproule report provides a geophysical interpretation of existing 2D seismic data covering four exploration licenses in the Gulf of St. Lawrence adjacent to the west coast of Newfoundland (approx. 1.5 million acres). Vulcan is a 30% shareholder of NWest Energy Inc.
Sproule identified 155 prospects and leads at three different stratigraphic horizons on the licenses. Some of these geophysical leads are very interpretive, based upon limited 2D seismic control, and will require additional seismic to prove their validity and size. All require further seismic delineation to upgrade them to drill ready status. Many of the prospects and leads are stacked vertically, enhancing their prospectivity by providing multiple targets at any individual drilling location. Sproule selected the eleven highest priority geophysical anomalies based on the geophysical and geological data available and concluded “The 11 most significant geophysical anomalies herein considered as forming the initial exploratory drilling phase of NWest’s ongoing program may have an undiscovered in-place resource in the order of 3.8 billion barrels”. These offshore licenses have never been drilled and the resource estimate is of undiscovered resources with no certainty that any of the resources will be discovered, recovered or developed.
In the opinion of Vulcan Minerals Inc., this resource assessment identifies the impressive order of magnitude of the targets contained in these offshore licenses. This certainly justifies further exploratory work towards a drilling program. NWest is currently recruiting a technical management team to undertake that task and the requisite financing required. This independent verification of Western Newfoundland’s petroleum potential confirms the Company’s commitment to this area as an emerging petroleum exploration region.