Vulcan minerals AGM SummarySUMMARY OF VULCAN'S AGM:
Vulcan Minerals held its AGM today at St. John's.After dispensing with the ususal corporate formalities, Mr. Laracy gave a brief summary of the Company's 2003 achievements, as well as an overview of Vulcan's planned program for the remainder of 2004.
In 2003, Vulcan was instrumental in developing a business relationship with Jennings Capital, which resulted in the closing of a $2 million financing that will enable Vulcan to carry out its oil exploration program on the province's West Coast , specifically Flat Bay and Parson's Pond.
Also, Bill Koenig,former Wolverton oil and gas analyist, now head of reaearch at Hesperian Capital, has recently joined Vulcan's Board of Directors.
Vulcan was also successful in optioning its prime mineral properties at Little River, and TL, Voisey's Bay to Nortec Ventures.Nortec recently issued a press release, outlining its exploration plans for the current year.Here are two brief excerpts from that news item:
TL, VOISEY'S BAY
A National Instrument 43-101 engineering report by Phillip Saunders, BSc,
PGeo, and William Scott, PhD, PEng, PGeo, for the company, recommends
additional UTEM and gravity surveys in phase 1 to cover most prospective
parts of the property, including the Falconbridge UTEM anomaly. Contingent
on positive results from these surveys, drilling is recommended in phase 2.
The phase 1 work program budget is expected to be $208,000.
LITTLE RIVER
An engineering report by Mr. Saunders, BSc, PGeo, of Saunders Management,
recommends that future exploration should proceed in two stages. Phase 1
recommendations consist of updating all previous data and compiling all
maps produced by Westfield to include trench and drill hole locations and
results. A new orientation induced polarization and detailed magnetic
survey is recommended over the 22 West prospect, followed by three diamond
drill holes to test the higher-grade mineralization of the 22 West zone.
Dependent on the results of phase 1, a phase 2 program consisting of
further geophysical surveys and additional drilling is proposed. The phase
1 program is budgeted at around $102,000.
WESTERN NEWFOUNDLAND
1.Parson's Pond
Mr. Laracy stated that the recent Parson's Pond well came in on budget, costing approximately $950,000 to drill, with Vulcan's share of the cost to be approx. $180,000.As a result, Vulcan earned a 10% ownership in both ot the Parson's Pond permits.
It was determined that the drill program penetrated the seismic anomoly, however, the reservoir rock wasn't something other than expected. There were several up-hole gas shows that are currently under analysis, and it hasn't yet been determined if these gas shows will be tested for potential commercial viability.
2.Flat Bay #1.
Flat Bay #1 has undergone a fracturing, perforation and stimulation program at approx. 195 meters depth.A pump jack has been installed on the well, and the well has undergone initial stages of recovering the frac fluid remaining in the well.During the process, it was determined that the pump has broken and , has been shipped back to the manufacturer for repair.Prior to pump failure, frac fluid was being recoved at the rate of ~~15 barrels a day.Operations will recommence once the pump has been reinstalled.
3. Flat Bay #2 & 3..
Mr. Laracy reported that he is still in the latter stages of sourcing a conventional drill rig out of Ontario , and is expecting to have a final word on it by the late this week.This rig, when procured, will enable Vulcan to drill its next two, and possibly three, wells to conventional standard.Vulcan plans to spud FB#2 next door to the former American Reserve well, which was abandoned due to technical problems at 660 meters deep. Drilling records indicate that this well bottomed in 150 meters of oil saturated cap rock, that was sitting above the targeted reservoir package.Vulcan plans to drill further into the reservoir rock to an approximate depth of 800-1000m.
Flat Bay #3 will be targetting a reservoir formation at an approx. 1000m depth level.
4.OTHER PROSPECTS:
Vulcan has several expressions of interest from companies currently interested in joint venturing the Storm and Hurricane targets.It is anticipated that interest from companies that are watching this play unfold, will increase immensely once a conventional rig has been mobilized to the area, and/or, Flat Bay #2 makes a discovery.
Carboniferous Targets
STORM-Permit 96-105
This prospect lies approximately 5 km east of the Flat Bay Anticline and covers an area of approximately 10 square kilometres. A 1600m well is required to test the structure to the Anguille Group. A shallower test to 900m could test the Codroy Group. The trap consists of an anticline believed to be induced by westward thrusting of the Steel Mountain basement block to the east. Seismic anamolies within the Codroy Group sequence exhibit “bright spots” which may be indicative of hydrocarbon-water contacts.
Ordovician/Cambrian ? Lower Anguille - Carboniferous
Hurricane Prospect- Permits 03-106 and 03-107
This prospect potentially covers in excess of 100 square kilometres underlying the Flat Bay Anticline and extending down-dip to the east. Targets include the Ordovician/ Cambrian and overlying Carboniferous units. The presence of the Ordovician/Cambrian platform is inferred from the seismic data only and has not been intersected by drilling and does not occur in outcrop in the immediate area. Comparison of seismic character in areas of known platform occurrences with the seismic character of this play suggests the presence of platform sediments. Alternatively, the seismically imaged sediments could be Lower Anguille Carboniferous units. A stratigraphic test hole (< 1000m deep) can test the geologic model, though the structure itself will require several wells at depths up to 3000m to adequately test all the potential trapping compartments within the structure. The trap consists of a tilted fault block sealed by Carboniferous or intra-platform rocks. Additional seismic surveying will be required to properly define the targets.