TSX Venture Exchange: CQV
Frankfurt Stock Exchange: DFM
ST. JOHN'S, Nov. 20 /CNW/ - Canadian Imperial Venture Corp ("CIVC" / the
"Company") is pleased to provide the following update on activities in the
Company's areas of interest.
The first well of a planned ten well shallow gas program was drilled,
logged and cased in October. Open hole logs indicated net gas pay of 12 m in
three zones. Last week, cased hole logs were run which confirmed the
previously run open hole logs. The well was then perforated and swabbing
operations will be conducted as soon as equipment is available.
Operations have been completed on a proprietary geophysical program
covering some 2.25 Townships (81 square miles) in Southern Alberta.
Interpretation of the geophysical data is ongoing and will be applied in the
Company's land acquisition and drilling programs.
Mr. Warren Smart has been named exploration manager for CIVC. Mr. Smart
is an explorationist with over 24 years of varied experience. His career
includes 16 years with Petro- Canada where he developed considerable expertise
in a variety of areas. In addition to that he has spent eight years with
Calgary based junior and mid-sized oil and gas companies. He was directly
responsible for many exploration and development programs, which resulted in
significant reserve additions. Mr. Smart is a member of the Association of
Professional Engineers, Geologists and Geophysicists of Alberta.
The Company received a drilling notice from the Operator, Shoal Point
Energy Limited ("SPE") that it intends to drill an onshore to offshore
directional exploration well, Shoal Point 2K39, to test the St. George's Group
sediments. For this purpose, the Operator has stated that a triple drilling
rig, Nabors No.45 has been contracted and will be relocated from Western
Canada to Shoal Point. The rig is due to leave Western Canada around
November 30th and operations are planned to commence around December 15th.
Estimated cost to mobilize the rig, drill, log and drillstem test the well is
$11.5 million. The Company, which holds a 40% interest in the Shoal Point area
will not be participating financially in the well, having previously farmed
out to SPE. After SPE earns its interest by drilling the proposed well, CIVC
will retain a 12% working interest in the area. The well will also have
validated offshore Exploration Licence 1070 for a further 3 years.
The Company received a drilling notice from the Operator, PDI
Production Inc. ("PDIP") that it proposes to drill a horizontal exploration
well, Port au Port # ST#3, out of the Port au Port #1 well bore to test the
Aguathuna Formation of the St. George's Group. For this purpose, the Operator
has stated that a triple drilling rig, Nabors #57 has been contracted and will
be relocated from Western Canada to Garden Hill. The rig is due to leave
Western Canada around November 20th and operations are planned to commence
around December 4th. Estimated cost to drill, case and test the well is $16
million. The Company, which holds a 40% interest in the Garden Hill area, has
elected not to participate financially in the well. Should the well be
successful in establishing significant production, the Company will retain its
full 40% interest in the well after PDIP recovers 500% of its drilling,
completion and associated well costs out of production from that well.
"These are exciting times for CIVC," said Steven Millan, CEO of CIVC. "We
have worked long and hard to keep this exploration play alive. During the last
ten years we have seen $12 oil and extreme aversion to exploration by both
industry and investors alike. Today, with oil, and especially light oil at a
premium, this high impact play has roared to life with the drilling of the two
high potential exploration wells. In keeping with our previously announced
risk management plan, CIVC is carrying minimum downside risk in these wells
while retaining significant upside participation. Similarly, our Alberta
activity diversifies CIVC's portfolio of interests to include exposure in a
mature basin to balance our pioneering efforts in Western Newfoundland".
CANADIAN IMPERIAL VENTURE CORP.
Steven M. Millan, P.Geo.
Chairman and CEO
This release includes certain forward looking statements which reflect
beliefs, expectations, objectives and goals which are believed to be
reasonable at the time such statements are made. Actual results could differ
materially from anticipated results and may be impacted upon such factors as
commodity prices, political developments, legal decisions, market and economic
conditions, industry competition, the weather, changes in financial markets
and changing legislation.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Canadian Imperial Venture Corp., (709)
739-6700, Fax: (709) 739-6605, firstname.lastname@example.org,