Vulcan a Successful bidder on Petroleum PermiVulcan bids highest on two Newfoundland parcels
Vulcan Minerals Inc
VUL
Shares issued 15,159,753
Dec 16 2002 close $ 0.17
Tuesday December 17 2002
News Release
Mr. Patrick Laracy reports
VULCAN MINERALS INC. WINS PETROLEUM LAND SALE,
WESTERN NEWFOU ...
Vulcan Minerals was today notified by the Department of Mines and Energy,
government of Newfoundland and Labrador, that it is the highest bidder on two
parcels of land onshore western Newfoundland. On Dec. 13, 2002, Vulcan made
certain closed tender bids for petroleum parcels in western Newfoundland
pursuant to the competitive request for bids 2002 process carried out by the
government of Newfoundland and Labrador. The bids were expressed in terms of
the total minimum work commitment over the five years of the primary term of a
permit. If this work commitment is fulfilled and at least one well is drilled then a
permit is extended for a two-year secondary term. The permits will be issued
upon payment of a security deposit in the amount of 20 per cent of the work
commitment bids within 21 days of receipt of notice to post the security deposit.
These new parcels cover an area of approximately 97,000 acres and 58,800
acres which would bring the total land position along with Permit 96-105 to
235,800 acres.
Vulcan was the highest bidder on parcels 11 ($1.01-million) and 12 ($155,105)
situated adjacent to its existing Permit 96-105 in the Bay St. George basin. Vulcan
has been a pioneer of exploration of this basin with an oil discovery in the Flat Bay
No. 1 well which is presently suspended. It is the company's intent to stimulate
and test this well in 2003 along with an additional program of drilling. The
company has accumulated an extensive database of geological and geophysical
data in the basin. Several drill targets have been identified in Carboniferous age
rocks as well as rocks interpreted on seismic to represent Ordovician carbonate
and clastic platform rocks. This inferred presence of Ordovician targets
significantly elevates the petroleum potential of the area by increasing target size
and variety.
The company believes that the new land acquisition along with the accumulated
geological and geophysical database has reached a critical mass that will attract
the necessary financing by way of equity financing or joint venturing to properly
test this prospective area. A map showing the location of the land parcels is being
posted on the company Web site at www.vulcanminerals.ca under the heading
Properties/Onshore Newfoundland Petroleum.