Stock Symbol: TSX: VUL
Shares issued: 28,510,884
ST. JOHN'S, Oct. 18 /CNW/ - Vulcan Minerals Inc. ("the Company" TSX-V:
VUL), is pleased to announce that the Flat Bay No. 3 well has been drilled and
logged to total depth and has penetrated oil bearing formation over the
following intervals, representing the largest intervals yet seen in the area:
- 40-135m anhydrite-fractured cap rock
- 140-210m conglomerate
- 215-225m conglomerate
- 235-240m conglomerate
- 270-275m siltstone-sandstone
The oil presence is based on fluorescence in the cuttings similar to that
seen in Flat Bay No. 1 (300m north of Flat Bay No. 3) where oil has been
recovered from the wellbore and the Flat Bay test core hole where live oil was
present in core. The oil in Flat Bay No. 3 did not flow into the well bore
under open hole conditions. The reservoir is interpreted to be of low
permeability inhibiting oil flow. The well was located on the edge of an
inferred fault zone where natural fracturing was interpreted to occur.
Cuttings from Flat Bay No. 3 indicate the presence of fracturing and this has
probably resulted in the oil penetrating the thickest oil section yet seen in
the area, particularly in the anhydrite cap rock. In order to better ascertain
the geometry of the fracture system, which would enhance any potential oil
recovery, the Company is preparing to acquire additional seismic and high-
resolution aeromagnetics over the Flat Bay area. The exploration focus will be
on fracture identification for reservoir enhancement that may be exploitable
by horizontal drilling or enhanced recovery techniques. Flat Bay No. 3 again
demonstrates that a substantial active petroleum system is in place in the
Flat Bay structure.
The Company has mobilized its rig to the Hurricane No. 1 location
approximately 15 kilometres south of the Flat Bay structure. The Hurricane
structure is a large feature on the southern portion of the Flat Bay
Anticline. Reconnaissance seismic indicates it could cover an area in excess
of 100 square kilometres. It has several fault compartments that will require
multiple wells to adequately test the feature. The Hurricane No. 1 well will
test the updip end of a fault block and will penetrate target horizons
consisting of supra-evaporite sandstones, sub-evaporite sandstones (equivalent
to the Flat bay conglomerate) and a deeper seismically anomalous section that
may represent lower most Carboniferous sediments or Ordovician/Cambrian
platform sediments. Thus multiple target horizons will be penetrated enroute
to the projected total depth of 1,000 metres. This is the first well ever
drilled in this area. Terralliance Canada Inc. has a right to earn a 33 1/3
working interest in the well by paying 50% of drilling and completion costs.
Results will be released when available.
Vulcan is a junior exploration company focused on exploring for petroleum
in Western Newfoundland. The Company has an experienced management group and
is carrying out a multi-well program in 2005. Vulcan owns interests in
approximately 250,000 acres in the Bay St. George Basin, which has the
potential to be a new petroleum basin in North America.
The TSX Venture Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
%SEDAR: 00003997E
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