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Priority Ventures awaits nod from province on drilling Priority Ventures Ltd PVS Shares issued 10,489,249 Nov 21 2001 close $.600 Thursday Nov 22 2001 News Release Mr. Neil Swift reports Priority Ventures drilling program will commence immediately upon receipt of its well licence. The well licence application for drilling coalbed gas on Vancouver Island was submitted to the Oil and Gas Commission Oct. 5, 2001. Priority's coalbed gas well application is unique for British Columbia. Not only is it the first production application in the province, but its location on Vancouver Island would represent the discovery of a new oil and gas basin in British Columbia. Consequently the permitting process has been lengthy and detailed, but no unexpected hurdles have arisen. The mechanism to streamline future permitting for coalbed gas wells on Vancouver Island is being formulated by the Ministry of Energy and Mines. The proposed changes when implemented will have immediate and positive consequences for Priority and other coalbed gas developers throughout the province. As part of Priority's three-test-hole drilling program this summer several coal samples were measured for gas content. The desorbed gas content was above average and would ensure reserves considerably higher than one billion cubic feet per 160 acres. In addition, Dr. Barry Ryan, coal geologist for the Ministry of Energy and Mines, performed experiments on the coal at the University of British Columbia that indicated Priority's coals were oversaturated with methane gas, a fact that was indicated during drilling, but now confirmed by independent research. Gas analysis shows the methane gas recovered is sweet (no H2S), with minimal amounts of nitrogen (N2), and only traces of carbon dioxide (CO2). As part of the summer test-hole program dozens of coal samples were sent to Birtley Labs in Calgary. The coals were tested for numerous qualities, including sulphur, ash and heat content. The coal's washability and ability to coke were also tested. Results to date indicate the coals have excellent coking abilities and wash sufficiently well that specifications for the Nymex Appalachian coal contract could be met. The present price for such coal at West Shore Terminals in Vancouver is $50 to $59 per ton. Additional drilling on the western portion of Priority's coal licences could hold the potential for an economic coal deposit. The location of the coal relative to tidewater improves project economics dramatically. (c) Copyright 2001 Canjex Publishing Ltd. https://www.canada-stockwatch.com