Vulcan Exploration UpdateVULCAN MINERALS INC.
333 Duckworth St.
St. John's, NFLD.
CANADA A1C 1G9
Tel. (709) 754-3186 Fax (709) 754-3946
NEWS RELEASE
February 10, 2005
Stock Symbol: TSX: VUL
Shares issued: 28, 173,384
VULCAN MINERALS INC- Exploration Update
St. John's - Newfoundland - Vulcan Minerals Inc. ("the Company" TSX-V: VUL)
provides the following update:
Seismic Program:
The seismic data recently acquired in the Bay St. George Basin has been
processed and is currently being interpreted. The new data is primarily
focused on the Hurricane Prospect approximately 20 kilometers south of the
Flat Bay project in Western Newfoundland. The Hurricane Prospect covers
approximately 100 square kilometers along the Western flank of the Bay St.
George basin and provides multiple target zones based on seismic
interpretation. The new seismic data will assist in target selection for the
2005 drill program.
Storm Prospect:
The Company also reports that Terralliance Inc. has agreed to an extension
of their farmout agreement on the Storm Prospect to July 28, 2005. The Storm
Prospect is situated approximately 10 kilometers northeast of the Flat Bay
Project. It consists of an anticline structure (approximately 20 square
kilometers) with marine and non-marine sandstone reservoir targets as well
as limestone targets. These targets represent different rock types of a
younger age than the reservoir at Flat Bay, thus providing better primary
reservoir quality potential. Terralliance may earn a 50% working interest in
the Storm Prospect by paying 66 2/3rds of the drilling and completion costs
on the earn-in wells.
Flat Bay #1
The Flat Bay #1 well encountered pumping problems during the testing phase
in the summer of 2004. Residual frac sand at the bottom of the hole causes
the pump to malfunction: Flat Bay #1 is a shallow oil discovery at 195
meters which requires further pumping to retrieve all the frac fluid from a
previous stimulation operation before any determination of oil flow can be
made. The Company is reviewing options to resume testing of the well in a
cost-effective manner. However operations would not commence before the
Spring of 2005.
2005 Drill Program:
Hydrocarbon shows in the recently drilled Flat Bay #2 well confirm the
existence of a large-scale active petroleum system in the basin. Up to now,
the focus has been on only one reservoir target, the Fischells Brook
conglomerate-sandstone. The 2005 drilling program will test other potential
reservoirs within the Storm and Hurricane Prospects. Preliminary
interpretation of the new seismic data on the Hurricane Prospect indicates
numerous targets of varying depth with multiple trapping scenarios on this
very large structure. The number of wells to be drilled in the upcoming
program will be a function of the depths of the selected targets. At this
time it is anticipated that four wells will be drilled. A solicitation for
expressions of interest from drilling contractors has been sent out. It is
the Company's plan to acquire a rig for a late spring-early summer
commencement of the drill program. Scheduling will depend on rig
availability. The Company has sufficient funds to carry out the program.
For information please contact Mr. Patrick Laracy, President of Vulcan
Minerals Inc. at Phone: (709) 754-3186, Fax: (709) 754-3946 or Email:
info@vulcanminerals.ca, Website: www.vulcanminerals.ca
The TSX Venture Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.