Sinking inA re-read of the following NR will show you why this is a successful play already. This News is just now sinking in and the oil community's ears are perking up.
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ST. JOHN'S, April 17 /CNW/ - In an April 11, 2008 News Release, Canadian
Imperial Venture Corp. ("CIVC" / the "Company") indicated that significant
shows of natural gas had been encountered in the Shoal Point et al 2K-39 well
while drilling the intermediate section of the hole between approximately
1062 m and 1700 m drilled depth. Since that announcement, the Operator and the
partners in the well have conducted a preliminary review of the significance
of these shows. The key points of this review are:
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- Elevated levels of gas in the mud were consistently observed between
1062 and 1700 m while drilling the Upper Green Point sequence of shales
which contain interbedded thin limestones, dolostones and siltstones.
Elevated rates of penetration were also observed over the same
interval.
- The Green Point Shale is well recognized in the geological literature
as an exceptionally rich source rock with up to 10% Total Organic
Carbon (TOC) content. Maturity ranges from immature to mature.
- The composition of the observed natural gas suggests that it may be
associated with light oil. Light oil is known from old wells and seeps
in the vicinity of Shoal Point, which are associated with the Green
Point, which is also the presumed source of 51 degrees API oil produced
from the Port au Port (number sign)1 well.
- The Green Point is the depositional equivalent of the Utica and other
similar shales which are currently being explored for and exploited in
Quebec and elsewhere along the Appalachian mountain belt in so called
"Resource Plays".
- The relatively recent development of "resource plays" in many regions
elsewhere, using horizontal drilling and fracing techniques, may
provide tools and analogues for the development of the Green Point
Formation.
- The unique configuration of land around Port au Port Bay allows that no
point in the Bay is more than 4 kms from shore while Long Point could
serve as a terrestrial platform for wells drilled westward into the
Gulf. Directional drilling from shore can easily reach out 4 kms or
more.
- Given the above premise, an area of over 100,000 acres may be available
for exploration from land. Drilling and producing from land would be of
considerable benefit to project economics and safety.
- No resource estimates have been made, but given the size of the exploitable area, the thickness of the shale member and its petroleum-generating capacity, the in place potential resource could be very large and comparable to the underlying Platform Carbonate play which remains the prime target of the 2K-39 well.
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"We are excited by the evidence in this well which shows the potential
for a major new play type in western Newfoundland, culminating in Port au Port
Bay and vicinity," said Steven Millan, CEO of Canadian Imperial. "The Shoal
Point group will continue to gather information from the well and develop
ideas on the play in consultation with experts specializing in this type of
play. In the meantime, however, drilling continues towards the primary target
in the well, the carbonates of the St. George's Group. The drilling depth
today is 2125 m and we estimate that the drill will start penetrating the
primary target zones around the middle of May."
Canadian Imperial Venture Corp. is an independent Canadian-based energy
company with interests in petroleum exploration and development in western
Newfoundland and in western Canada. Eastern Canada is the home to such
developments as the Hibernia, Terra Nova, White Rose, Sable Island, Deep
Panuke, and McCully fields.
CANADIAN IMPERIAL VENTURE CORP.
"Steven Millan"
Steven Millan, P.Geo.
Chairman and CEO