Vulcan Picks Offshore Petroleum BlockNEWS RELEASE
December 2, 2005
Stock Symbol: TSX: VUL
Shares issued: 28,510,884
Vulcan Minerals Inc. Wins Offshore Block
St. John's - Newfoundland - Vulcan Minerals Inc. ("the Company" TSX-V: VUL),
is pleased to announce that it is the successful bidder for parcel 7
offshore Western Newfoundland pursuant to Call for Bids NL05-1 by the Canada
Newfoundland and Labrador Offshore Petroleum Board (CNLOPB). Vulcan
submitted a joint bid on a 50/50 basis with a private company. Pursuant to
the call for bids the Company and its partner have 15 days to post a
security deposit of $128,000 for the offshore license representing 25% of
its work commitment bid amount of $512,012. The security deposit is
refundable if the work commitment is carried out. The exploration license
will have an initial 5-year term extendable for 4 additional years if a well
is drilled in the initial term.
Parcel 7 covers 395,000 acres of the Anticosti basin in the Gulf of St.
Lawrence immediately adjacent to the West Coast of Newfoundland (see map at
https://www.vulcanminerals.ca/press/default.html ). The area is prospective
for petroleum in Lower Paleozoic sediments as evidenced by the oil and gas
discovery at Port au Port #1, (100 km south), numerous onshore oil seeps and
petroleum production in similar rocks through Appalachia extending down to
Texas.
The parcel contains in excess of 1,200 line kilometres of seismic data
acquired by Mobil Oil in the 1990's. A preliminary in-house assessment of
interpreted seismic data filed with the CNLOPB confirms the presence of
several large structures at least one of which potentially exceeds 150 km2
in areal size.
Vulcan and its partner will commence a detailed analysis of all geological
and geophysical data towards securing partners to drill the block. Given the
environment of escalating energy prices, Western Newfoundland (both offshore
and onshore) provides the opportunity for significant new petroleum
discoveries. The Company is currently drilling Hurricane #2 onshore Western
Newfoundland and expects to be completed by Christmas. Onshore seismic
surveying is also ongoing as the Company aggressively advances its
exploration 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