Business
Vulcan Minerals Inc. forms new offshore exploration company
Vulcan Minerals Inc. forms new offshore exploration company.
About this update from Vulcan Minerals Inc.
[{"type":"text","content":"\n\n\n\n\nStock Symbol: TSX: VUL\nShares issued: 35,278,384\n\nST. JOHN'S, July 17 /CNW/ - Vulcan Minerals Inc. (\"the Company\" TSX-V:\nVUL), the Company is pleased to announce that it has entered into an arm's\nlength agreement to merge its 50% interest in offshore exploration license\n1098, Western Newfoundland with the license owners of the adjacent exploration\nlicense 1097 through the formation of a new private exploration company, NWest\nEnergy Inc. (NWest). In return Vulcan will receive 30% of the outstanding\nshares of Nwest making it the largest single shareholder. The remaining\nshareholders are the current private owners of the licenses, all of whom bring\nextensive expertise to NWest by virtue of their technical, marketing and\nfinancial skills. Nwest will retain a management and consulting team to carry\nout its business plan. The immediate focus of NWest will be the compilation\nand interpretation of existing data on both licenses towards attracting joint\nventure partners. The licenses are currently covered by approximately 2000\nline km of good to excellent quality seismic data. Given the buoyant energy\nmarket, NWest will be in a position to effectively market the petroleum\nprospectivity of its licenses.\nCollectively, licenses 1098 and 1097 cover 640,000 acres of the Paleozoic\nAnticosti Basin. Several targets up to 150 square kilometres in areal size\nwere seismically identified by a previous landowner. The larger targets exist\nin the foreland basin, an area that has never been drill tested in the eastern\nGulf of St. Lawrence. The licenses are adjacent to the shoreline of Western\nNewfoundland where excellent petroleum source rocks and reservoirs occur on\nshore. For example, north of the licenses at Port au Choix, an uplifted and\nexhumed oil field has been geologically recognized in outcrop over an area of\napproximately 80 square kilometres with an inferred paleo-reservoir thickness\nof up to 100 metres. The Company believes that the offshore licenses have the\npotential to contain similar oilfields that remain buried within down thrown\nfault blocks. Maps locating the licenses and onshore geology are posted on the\nCompany's website (http://www.vulcanminerals.ca/). The relevant discussion is\nnear the end of the slide show.\nLicenses 1097 and 1098 were issued on January 16, 2006 and have a\nfive-year i...