Stock Symbol: TSX: VUL
Shares issued: 28,398,385
ST. JOHN'S, NL, Aug. 2 /CNW/ - Vulcan Minerals Inc. ("the Company"
TSX-V: VUL) is pleased to announce that it has entered into a farmout
agreement with Terralliance Technologies Canada Inc. (Terralliance) whereby
Terralliance can earn a 33.33% working interest in the Hurricane No. 1
Prospect by contributing 50% of the drilling and completion costs of the
earn-in well and paying a $50,000 bonus cash payment (payment has been
received). The Hurricane No. 1 prospect earn-in lands consists of 4 square
kilometers on the Hurricane Structure which has the potential to cover up to
100 square kilometers based on seismic and geological data. By participating
in Hurricane No. 1, Terralliance will earn an option to participate in
Hurricane No. 2 on the same terms. If Terralliance participates in Hurricane
No. 2 they will earn an option to participate in Hurricane No. 3 on the same
terms as Hurricane No. 1 whereupon their earn-in rights will cease.
Vulcan is pleased to have Terralliance as a participating partner in its
ongoing exploration drilling program in the Bay St. George Basin, Western
Newfoundland. The proposed Hurricane Prospect locations are seismically
defined and contain multiple potential petroleum target horizons. These
include new geologic horizons never before drilled as well as a petroleum
target that has been proven to contain an active petroleum system
approximately 20 km north at the Flat Bay discovery. Vulcan owns approximately
250,000 acres of prospective lands and has identified numerous targets from
seismic and geologic data. It is the Company's intention to test a variety of
targets with different reservoir horizons and trapping mechanisms in order to
locate commercial petroleum deposits and understand the geological context of
the petroleum system discovered thus far. The addition of Terralliance as a
partner will extend Vulcan's budget to enable more drilling beyond the
three-well program originally envisaged for 2005.
Storm No. 1 Update
The Company reports that the Storm No. 1 well is at a depth of 720 metres
and is drilling ahead. The main target horizon is anticipated to be penetrated
over the next few drilling days. Results will be released when operations
cease. The rig will then be moved to the Hurricane No. 1 (Backstretch
location) site to be followed by the Hurricane No. 2 site (Jockey location).
Vulcan is a junior exploration company focused on exploring for petroleum
in Western Newfoundland. The Company has an experienced management group and
is well funded to carry 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
