RE: Drilling to be delayed ?Hi gertieandrews;
Good to see newcomers to the thread;tells me that there are individuals out there who seldom post who are following the Vulcan story.How long have you been following the West Coast oil play,and
the Vulcan story in particular?
Please allow me to correct some of your statements so that thread participants have the benefit of accurate information.
1.With respect to American Reserves current drilling program, the information I have from my sources is that the company is still on site and is continuing to drill;thus it would be premature to suggest that "they have come up empty" as you indicate. Please keep in mind that AMR is a private company, thus it is very difficult to get accurate info on their program.In any event,AMR's program will have no
bearing on Vulcan's plans for Flat Bay...Vulcan will be chasing three seismic targets in their upcoming well on the St. Georges Bay Arch Structure, 4 km to the NE of their previous well.
2. Your statement that Vulcan has a burn rate of of approx $100,000 per quarter is completely false.Please check the Sedar site(www.sedar.com) for Vulcan's detailed financial statements.To assist you, you will find that Vulcan spent approx. $140,000 per year on average for the past three years(1998-2000).
3. I wish to correct your statement re the amount of money raised by Vulcan in recent financings.I called the company to double-check my figures with the president, Mr. Pat Laracy.In recent financings Vulcan has publically raised $472,000, and currently has approx. $500,000-$600,000 in the treasury.
4.You are correct in your statement that it will cost approx. $500,000 to drill a well.Given the current market situation in Vulcan stock, Vulcan should be able to raise additional funds here if they decide to
go it alone and drill.As I have stated before, I am expecting Vulcan to land a JV partner for the Flat Bay program;Mr Laracy stated in a public forum several months ago that there are serious
expressions of interest in the Flat Bay permit from several exploration companies.
On a final note, I would encourage you to call the company if you have further questions or concerns.
I trust that this is helpful.
Len