Vulcan Minerals Inc.

Vulcan Minerals Inc.

July 15, 2010 10:20 ET

Vulcan Minerals Inc.: Bay St. George and Parsons Pond Update

ST.JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - July 15, 2010) - Vulcan Minerals Inc. ("the Company")(TSX VENTURE:VUL) is pleased to report that the required services for the completion and testing of Red Brook #2 and Robinson #1 are being contracted and finalized. Both wildcat wells encountered thick gas charged intervals as described in a news release dated June 7, 2010. Actual field operations will commence as soon as the various equipment and services can be co-ordinated and mobilized to site in the next few weeks. The completion will consist of two phases. Phase I will entail perforation of specific intervals primarily for pressure testing and injectivity testing which will provide necessary parameters to design the optimal hydraulic fracture stimulation of the zones which will be Phase II of the operation. Phase II fraccing will proceed as quickly as possible following Phase I. The totality of the program could extend over three months. The completion and testing program is the culmination of a wildcat drilling program in the Bay St. George basin, western Newfoundland carried out by a 50-50 joint venture with Investcan Energy Corporation. The results, combined with additional delineation drilling will provide the necessary information to support a resource and reserve assessment for the southern portion of the Bay St. George permits.

Parsons Pond:

The Company has been advised by the operator, Nalcor Energy Oil and Gas, that site construction for the Finnegan well should be completed by the end of July and drilling should commence shortly thereafter. Finnegan will be the second of a proposed three well program in the Parsons Pond area. It will be drilled on exploration permit 03-102 where the Company owns a 7.39% participating, working interest. The well will be a wildcat well drilled to approximately 3000 meters in an area known historically for numerous oil seeps at surface and in shallow well bores within the Cambrian Ordovician- Anticosti Basin. Finnegan will be located approximately 14 kilometres north of the first well of the program, Seamus #1. Seamus #1 completed drilling in late May to a total depth of 3160 metres. The well encountered a hydrocarbon bearing zone that warrants flow testing based on gas shows while drilling and geophysical log responses. The zone is behind casing and the well is currently suspended. In order to determine flow characteristics and the volumes of gas in place, the operator proposes to test the well later this summer/fall with a service rig. 

As well, the Company is advised that approval has been received from the Environmental Review Process relating to new road construction required to access the third drill location, Darcy #1. Upon approval of an environmental protection and monitoring program, new road construction is expected to commence in mid-summer followed by drilling in the fall after Finnegan #1 is completed. These wells are the first deep wells to be drilled in this part of the Cambrian-Ordovician aged Anticosti Basin in western Newfoundland.

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.

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

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