Business
Vulcan Minerals Inc. - Vulcan Farms out Hurricane Prospect Locations
Vulcan Minerals Inc. - Vulcan Farms out Hurricane Prospect Locations.
About this update from Vulcan Minerals Inc.
[{"type":"text","content":"\n\n\n\n\nStock Symbol: TSX: VUL \nShares issued: 28,398,385\n\nST. JOHN'S, NL, Aug. 2 /CNW/ - Vulcan Minerals Inc. (\"the Company\" \nTSX-V: VUL) is pleased to announce that it has entered into a farmout\nagreement with Terralliance Technologies Canada Inc. (Terralliance) whereby\nTerralliance can earn a 33.33% working interest in the Hurricane No. 1\nProspect by contributing 50% of the drilling and completion costs of the \nearn-in well and paying a $50,000 bonus cash payment (payment has been\nreceived). The Hurricane No. 1 prospect earn-in lands consists of 4 square\nkilometers on the Hurricane Structure which has the potential to cover up to\n100 square kilometers based on seismic and geological data. By participating\nin Hurricane No. 1, Terralliance will earn an option to participate in\nHurricane No. 2 on the same terms. If Terralliance participates in Hurricane\nNo. 2 they will earn an option to participate in Hurricane No. 3 on the same\nterms as Hurricane No. 1 whereupon their earn-in rights will cease.\nVulcan is pleased to have Terralliance as a participating partner in its\nongoing exploration drilling program in the Bay St. George Basin, Western\nNewfoundland. The proposed Hurricane Prospect locations are seismically\ndefined and contain multiple potential petroleum target horizons. These\ninclude new geologic horizons never before drilled as well as a petroleum\ntarget that has been proven to contain an active petroleum system\napproximately 20 km north at the Flat Bay discovery. Vulcan owns approximately\n250,000 acres of prospective lands and has identified numerous targets from\nseismic and geologic data. It is the Company's intention to test a variety of\ntargets with different reservoir horizons and trapping mechanisms in order to\nlocate commercial petroleum deposits and understand the geological context of\nthe petroleum system discovered thus far. The addition of Terralliance as a\npartner will extend Vulcan's budget to enable more drilling beyond the \nthree-well program originally envisaged for 2005.\n\nStorm No. 1 Update\n\nThe Company reports that the Storm No. 1 well is at a depth of 720 metres\nand is drilling ahead. The main target horizon is anticipated to be penetrated\nover the next few drilling days. Results will be released when operations\ncease. The rig will then be moved to the Hurricane No...