Stock Symbol: TSX: VUL
Shares issued: 35,278,384
ST. JOHN'S, June 27 /CNW/ - Vulcan Minerals Inc. ("the Company" TSX-V:
VUL), is pleased to report that it has completed a detailed integration and
interpretation of new geophysical data and drilling results from 2005 in the
Bay St. George Basin, Western Newfoundland. These new geophysical data include
70 line kilometres of conventional seismic, multi-component seismic and 4,400
line kilometres of high-resolution aeromagnetic data. Drilling results from
2005 demonstrated that the petroleum system discovered at Flat Bay is also
active within the Hurricane area approximately 20 km south. Shallow drilling
on Hurricane in 2005 encountered significant oil and gas shows but the traps
were breached. New targets identified deeper within the Hurricane Structure
(up to 2,500 - 3,500 metres) have better trapping potential in rocks not yet
drilled in the basin. Based on local geology these rocks are interpreted to
host better reservoir quality rocks than seen in the shallower section and be
closer to the source rock depocentre of the basin. More seismic will be
required to sufficiently define these deep targets and optimize drill
locations. The Company has laid out the location for this survey and has
initiated the permitting of the survey. Subject to ground conditions, the
survey is planned for late summer-fall. Otherwise it should be acquired this
winter with plans to drill in 2007. The combined target areas on the structure
could exceed over 100 square kilometres in areal size making it the largest
feature the Company has explored. Drilling will require a larger rig than the
Company currently owns. The Company is monitoring and assessing rig
availability in Eastern Canada for the project.
At the shallow Flat Bay oil deposit, the Company plans to drill a
continuous core through the reservoir section to allow a detailed engineering
analysis of the reservoir. That operation initially anticipated for June has
been rescheduled to the third quarter due to the unavailability of a diamond
coring rig. The purpose of the drill program is to test an area where
fracturing of the reservoir is interpreted to be prevalent based on recently
obtained geophysical data. A detailed core analysis will provide the Company
with direction on how to proceed with potential recovery of oil from the Flat
Bay deposit. The Company has also identified several new targets outside the
Flat Bay and Hurricane areas that are less than 1,000 metres deep and capable
of being tested with the Company's own drilling rig. Permitting has commenced
for a fall drilling program consisting of two wells subject to financing.
The Company's website, www.vulcanminerals.ca, has been recently updated,
including a detailed presentation on our western Newfoundland petroleum
prospects (see Updates link).
<<
The TSX Venture Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
>>
%SEDAR: 00003997E
