Stock Symbol: TSX: VUL
Shares issued: 28,510,884
ST. JOHN'S, NL, Dec. 2 /CNW/ - Vulcan Minerals Inc. ("the Company" TSX-V:
VUL), is pleased to announce that it is the successful bidder for parcel 7
offshore Western Newfoundland pursuant to Call for Bids NL05-1 by the Canada
Newfoundland and Labrador Offshore Petroleum Board (CNLOPB). Vulcan submitted
a joint bid on a 50/50 basis with a private company. Pursuant to the call for
bids the Company and its partner have 15 days to post a security deposit of
$128,000 for the offshore license representing 25% of its work commitment bid
amount of $512,012. The security deposit is refundable if the work commitment
is carried out. The exploration license will have an initial 5-year term
extendable for 4 additional years if a well is drilled in the initial term.
Parcel 7 covers 395,000 acres of the Anticosti basin in the Gulf of St.
Lawrence immediately adjacent to the West Coast of Newfoundland (see map at
http://www.vulcanminerals.ca/press/default.html ). The area is prospective for
petroleum in Lower Paleozoic sediments as evidenced by the oil and gas
discovery at Port au Port No. 1, (100 km south), numerous onshore oil seeps
and petroleum production in similar rocks through Appalachia extending down to
Texas.
The parcel contains in excess of 1,200 line kilometres of seismic data
acquired by Mobil Oil in the 1990's. A preliminary in-house assessment of
interpreted seismic data filed with the CNLOPB confirms the presence of
several large structures at least one of which potentially exceeds 150 km2 in
areal size.
Vulcan and its partner will commence a detailed analysis of all
geological and geophysical data towards securing partners to drill the block.
Given the environment of escalating energy prices, Western Newfoundland (both
offshore and onshore) provides the opportunity for significant new petroleum
discoveries. The Company is currently drilling Hurricane No. 2 onshore Western
Newfoundland and expects to be completed by Christmas. Onshore seismic
surveying is also ongoing as the Company aggressively advances its exploration
program.
The TSX Venture Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
%SEDAR: 00003997E
