RE: Who controls oil?-PDI,CQV & TectonicsI doubt if PDI wants to lose its share of the Tectonics & CQV Play as set out in this news release -
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Trading Symbols:
TSX Venture Exchange: CQV
Frankfurt Stock Exchange: DFM
St. John’s, NL: Canadian Imperial Venture Corp. (“CIVC” / "The Company") is pleased to announce that it has entered into a farmout agreement pertaining to the Shoal Point and Garden Hill North prospects. The agreement is with a Calgary based private company, Tectonics Inc. (“Tectonics”) whose President is a Newfoundlander, Dr. George Langdon, a recognized expert in the geology of Western Newfoundland. Tectonics will be supported by Kingsdale Capital Markets Inc. both as financial advisor and lead fund-raiser in its exploration efforts. Kingsdale Capital Markets Inc. is a leading global financial services firm dedicated to helping mid-cap companies accelerate their growth and build shareholder wealth through timely, responsive and creative access to strategic capital and business solutions.
“We believe that petroleum accumulations on the scale of Newfoundland’s east coast offshore exist along its west coast as well, and these are exciting times when an explorationist gets an opportunity to participate in an play of this magnitude, at a fraction of what it would cost on the Grand Banks,” said George Langdon, President of Tectonics.
Under the terms of the agreement, Tectonics will earn 70% of CIVC’s 40% interest in the Shoal Point prospect by drilling a well and paying approximately $1 million in upfront fees and deposits to third parties. The estimated well cost is between $7 million and $10 million and the well will be drilled prior to January 15, 2008. The preferred time for drilling in the area is from March to November 2007.
Provided Tectonics has fulfilled its obligations on Shoal Point, it will have earned the right to drill an additional well on the Garden Hill North prospect to earn 70% of CIVC’s 40% interest in that prospect. Prior to drilling this well, the farmee may propose a geophysical program on Garden Hill North, the cost of which will be shared by Tectonics and CIVC in the proportions 28%:12% respectively.
The Shoal Point prospect is the largest of three seismically defined structures, which include Garden Hill North and Garden Hill South along a structural inversion fairway. The geological concept for the play was first advanced by Hunt and EnCana (then PanCanadian Petroleum Limited) during the 1990’s. It was first tested in 1994-1995 by the Hunt / PanCanadian Port au Port #1 well which discovered the Garden Hill South Field which is currently being tested by CIVC and its operating partner PDI Production Inc. (“PDIP”). PDIP is currently earning a 60% working interest in the prospects named above and has the right to participate at its post-earning level in the Shoal Point and Garden Hill North programs.
Shoal Point was unsuccessfully tested in 1999 by the PanCanadian et al K39 well which was directionally drilled from an onshore wellsite to an offshore target. Subsequent to drilling this well, additional seismic data was acquired which, together with information from the well, helps immeasurably to explain the failure of K39 and to define the proposed drilling effort. Recent reprocessing and reinterpretation of the seismic data on the prospect by Newfoundland geophysicist Dr. Bill Nickerson of Global Geosolutions in Calgary, suggests a maximum area of closure in the order of 63 km2, or 15,500 acres.
“I am delighted that we have been able to conclude this deal with Tectonics,” said Steve Millan, CEO of CIVC. “The upside potential of Shoal Point is enormous, but this is an exploration well so the geological risk is significant. This farmout allows CIVC and Tectonics to share the risk and potential reward in a fair, equitable and prudent manner. An additional benefit is that it helps balance CIVC’s portfolio of activities from Production Testing at Garden Hill South, to a new concept Resource Play in Alberta, to High Impact Exploration at Shoal Point.”
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found at
https://www.canadianimperial.net/displaypage.php?id=119&parent_id=7
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