TSX Venture Exchange: CQV
Frankfurt Stock Exchange: DFM
ST. JOHN'S, April 11 /CNW/ - Canadian Imperial Venture Corp. (the
"Company" / "CIVC") is pleased to announce that it has entered into a Farmout
and Option Agreement with Shoal Point Energy Limited ("SPEL") of Calgary,
Alberta pertaining to petroleum and natural gas rights over the Garden Hill
South Area ("Farmout Lands"). Under the terms of the agreement, SPEL will re-
enter the Port au Port #2 well on or before August 13, 2007 and drill to a
contract depth of 3470 meters (true vertical depth) or a depth sufficient to
test the uppermost St. George Group (the "Test Well"). The subsurface target
of the well is approximately 750m to the north of Port au Port #1 in a
separate fault block as defined by 2D seismic. By drilling this well, SPEL
will earn 50% of CIVC's interest in the Farmout Lands. Port au Port #2 was
spudded in 2001 by CIVC and drilled to a depth of 500m, where it was cased and
In the event that the Test Well is not drilled, the Farmee will have the
right to earn a portion of the Farmout Lands by participating in any
recompletion or workover in Side Track #2 ("ST#2") in order to bring that well
back into production ("Option Well"). By covering CIVC's costs in the Option
Well, the Farmee will earn 50% of CIVC's interest in production from that
well. An option fee of $200,000 is payable to CIVC for the right to
participate in the Option Well.
With this Farmout and the previously announced Shoal Point / Garden Hill
North deal (December 22, 2006), CIVC now has a financial mechanism for funding
its financial needs for planned operations in western Newfoundland. These
include drilling at Shoal Point and Garden Hill South, remedial work at
ST#2 and potential geophysical programs and exploratory drilling
at Garden Hill North. To-date the farmee in the Shoal Point / Garden Hill
North deal has paid $1,000,000 in Option Fees to CIVC and has expended time
and funding to the planning process for the proposed operations.
The Farmee in the Shoal Point / Garden Hill North deal was Tectonics Inc.
("Tectonics") and under that agreement Tectonics had the option to transfer
its rights to a third party. Tectonics has exercised that right and the Farmee
for both deals is Shoal Point Energy Limited. SPEL is a private Calgary
company whose President, Dr. George Langdon, is a well-recognised expert in
the geology of western Newfoundland. SPEL will be supported by Kingsdale
Capital Markets Inc., both as financial advisor and lead fundraiser. Kingsdale
Capital Markets Inc. is a leading global financial services firm, dedicated to
helping mid-cap companies accelerate their growth and build shareholder wealth
through timely, responsive and creative access to strategic capital and
"The western Newfoundland play is characterized as high impact meaning
that potential rewards are high but so are risks and costs. CIVC had set out
some time ago to limit its risks and cash demands of this play while remaining
exposed, in a significant way, to potential success. We have now achieved this
objective," said Steve Millan, Chairman of CIVC.
"We have also taken a major step to balance our portfolio through the
proposed acquisition of USG Energy Corp. (see News Release of March 21, 2007).
This transaction has now been endorsed by the CIVC Board of Directors and has
received Conditional Acceptance by the TSX Venture Exchange."
Over the last several years, USG Energy Corp. has acquired 82 gross and
49.5 net sections of Cretaceous rights in Alberta. USG has developed a highly
focussed play concept pertaining to this acreage, and has targeted a much
larger land position as a result of the widespread reach of the play.
The combined CIVC/USG is now commencing an aggressive exploration
program, drawing on in-house funding and joint venture partnerships, which
will see the ongoing acquisition of land and geophysics over several core
areas and the drilling of up to 10 wells over the next year. The first of such
wells has been drilled and cased, and will be tested when equipment becomes
available in the area. USG has commissioned an independent engineering study
which supports the valuation attributed to USG by the CIVC buyout offer.
Even though in the early stages of development and sited in a mature
basin, the Company believes this play has the potential to develop into a
major exploration focus with an upside comparable to the west Newfoundland
properties, thereby providing an excellent counterpart to the Company's
high-risk/high impact opportunities in west Newfoundland.
For further information, please contact the Company.
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, email@example.com, website: