ST. JOHN'S, March 1 /CNW/ - Vulcan Minerals Inc. ("the Company"
TSX-V: VUL), is pleased to announce that Mr. Don Allen, C.M.A., C.A. has been
appointed Chief Financial Officer of the Company. Mr. Allen is a member of the
Canadian Institute of Chartered Accountants and the Institute of Chartered
Accountants of Newfoundland since 1991. He is also a member of the Society of
Management Accountants of Newfoundland and the Society of Management
Accountants of Canada since 1990. Mr. Allen has worked as a Chief Financial
Officer of an international law firm, Audit Senior for PricewaterhouseCoopers,
Audit Manager for the Office of the Auditor General of Newfoundland and
Labrador and currently operates his own business in the finance industry. He
brings a wealth of accounting experience to the Company. His appointment is
subject to TSX Venture Exchange approval.
Western Newfoundland Petroleum Exploration
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The Company has received and is having processed and interpreted all of
the seismic data and high-resolution aeromagnetic data from its late
2005 surveys of the Bay St. George basin. These data are proving to be very
beneficial to the progressive understanding of the geologic structure of this
under-explored basin. In particular, the high-resolution magnetic data is
providing geophysical control between seismic lines and assists in imaging the
architecture of the basin believed to control potential petroleum traps. As
well, an engineering review of the 2005 drill results in the Flat Bay area is
being undertaken to formulate a 2006 drill program. The Flat Bay oil deposit
is a shallow discovery (up to 150m oil bearing zone within a gross interval
40-275m deep) in a tight reservoir. New data in the area will focus on
fracture identification as targets for improved reservoir quality. Following a
full evaluation of the 2005 drill results and the new geophysical data, a
drill program for 2006 will be formulated with drilling anticipated to
commence in the 2nd quarter of 2006. The Company remains very encouraged by
the significant oil and gas shows encountered in its 2005 drill program. The
drilling proved the existence of a petroleum system at least 20km south of its
Flat Bay discovery which legitimizes the prospectivity of much of its
approximately 236,000 acre land position. This new basin with the potential
for high impact discoveries will undergo additional drill testing by the
Company. As well, the Company will continue to review drilling opportunities
in more mature basins towards balancing out its risk exposure.
Options Proposed
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The Company proposes to issue 100,000 incentive stock options to
employees exercisable at $0.40 for a 2-year period subject to TSX Venture
Exchange approval. The Company has reserved for issuance 3,502,834 shares
pursuant to its Stock Option Plan of which 2,211,250 have been granted,
including the grant described herein.
Vulcan is a junior exploration company focussed on exploring for
petroleum in Western Newfoundland both onshore and offshore. The Company also
owns petroleum rights over an area prospective for coalbed methane in Western
Newfoundland. As well, the Company owns mineral rights to a nickel/copper
discovery in Labrador and a gold prospect in Central Newfoundland. Both
mineral projects have been optioned out to Nortec Ventures Corp.
The TSX Venture Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
%SEDAR: 00003997E
