Newfoundland

Vulcan Minerals Inc., St. John’s, said final planning and procurement are under way to complete and test the Robinsons-1 and Red Brook-2 wells in western Newfoundland starting in July 2010.

By OGJ editors
HOUSTON, June 8
-- Vulcan Minerals Inc., St. John’s, said final planning and procurement are under way to complete and test the Robinsons-1 and Red Brook-2 wells in western Newfoundland starting in July 2010.

Three zones, A, C, and D have been initially prioritized for evaluation in Red Brook-2. Further zones exist in the well that based on the initial tests may also warrant further evaluation. Zones A, C, and D are relatively low porosity-permeability sandstones 105 m, 18 m, and 41 m thick, respectively.

Zones D and C flowed gas on drill stem tests. Zone A was not tested at that time. It is a thick sand that will be perforated to determine if it is gas or water bearing. At least two of the three zones will be hydraulically fractured.

At Robinsons-1, a long interval over 157 m will be perforated with a deep penetrating procedure to access multiple sands to acquire reservoir pressure and fluids. The upper part of the interval will be hydraulically fractured and flow tested. A second zone will also be fractured and tested. Robinson-1 contains many low porosity-permeability sandstones over a gross interval of more than 1,200 m.

The purpose of the current program is to test the lower zones which will allow for additional testing of the upper zones at a future date.

The test program is the culmination of a major wildcat drilling program in the Bay St. George basin carried out by a 50-50 joint venture with Investcan Energy Corp. These 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.

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