Vulcan Minerals Inc.

Vulcan Minerals Inc.

March 01, 2010 13:05 ET

Vulcan Minerals Inc.-Exploration Update

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - March 1, 2010) - Vulcan Minerals Inc. ("the Company") (TSX VENTURE:VUL) is pleased to provide an update on its petroleum exploration projects as follows:

Bay St. George Basin

The Company, in conjunction with its joint venture partner, Investcan Energy Corporation, are currently carrying out a full evaluation of well results from Robinsons #1 and Red Brook #2. This evaluation is designed to identify and prioritize zones for completion including fracture stimulation and flow testing. Solicitation and procurement of full completion services are underway. Field operations will be undertaken as soon as logistics and permitting will allow. That is expected within the late Spring – Summer time frame.

The joint venture has retained the services of a petroleum engineer and petroleum geologist to add to our existing technical team. They will focus on the full evaluation of the recent Red Brook/Robinsons gas discovery. As well, the joint venture will carry out further evaluation of the Flat Bay oil deposit, which will probably include new seismic and core drilling.

The Bay St. George permits cover approximately 250,000 acres containing several exploration leads requiring further seismic definition. In conjunction with a focussed evaluation of the recent gas discovery, further exploratory work will be carried out on the permits. Initially this will consist of additional seismic to be surveyed this summer. This will be followed by the drilling of favourable targets, the timing of which will be subject to logistics and equipment availability.

As a result of the 2009 drilling program and ongoing activities Investcan Energy Corporation has spent approximately 13.5 million of its 15 million dollar commitment in the Bay St. George project pursuant to its purchase of a 50% interest in the project. As a result, the Company is carried 100% on the remaining $1.5 million of expenditures on the project. After that, the company will contribute its 50% working interest share of joint venture expenditures. The completion program and seismic programs described above are tentatively budgeted at $4.5 million. The Company's obligation after its carried interest is satisfied is $1.5 million. The Company is funded to carry out these programs, but additional financing will be required to conduct further drilling in 2010 in the Bay St. George basin.

Offshore Labrador

The Company in conjunction with its joint venture partner and operator, Investcan Energy Corporation, are carrying out an environmental assessment of its offshore license and surrounding area towards permitting the area for a seismic acquisition program. An integral part of the process has been a series of consultation with various communities in Labrador. The operator expects that the assessment process to be complete by the second quarter 2010 which would facilitate a seismic acquisition program as early as this year, though a definitive decision to proceed this year has not been made as it will be dependent on several factors including logistics. The company owns a 50% working interest in exploration licence EL1107.

Parsons Pond

The Company has been advised by the operator, that Seamus #1 has commenced drilling. The well will be drilled under tight hole status, which will limit what partners can report regarding the well. The company has a 10% working interest in the well, which is the first of a planned three well program in 2010.

As a result of the ongoing programs, including the current drilling program at Parsons Pond, the Company remains a key driver of petroleum exploration in western Newfoundland and continues to provide its shareholders with leveraged exposure to an emerging frontier petroleum region.

Vulcan is a diversified junior exploration company focused on petroleum exploration in the under-explored western Newfoundland and Labrador areas and also holds mineral interests in areas strategic to its operations in Newfoundland and Labrador. This includes an approximate 19% shareholding in NWest Energy Inc., which owns 1.5 million acres of the offshore immediately adjacent to Vulcan's onshore Parsons Pond project.

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company. There can be no assurance that forward-looking information will prove to be accurate. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

Shares Issued: 48,084,455

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Vulcan Minerals Inc.
    Patrick J. Laracy
    (709) 754-3186
    Vulcan Minerals Inc.
    Gerri A. MacNeil
    Business Manager, Investor Relations
    (709) 754-3186
    (709) 754-3946 (FAX)