CALGARY, Oct. 17 /CNW/ - Vital Resources Corp. (CNQ Exchange - VITL;
Frankfurt Stock Exchange - VZN) announces a plan of development for Ramok and
Senabing Oil Fields.
Vital Resources has reached a Letter of Intent (LOI) agreement with a
privately owned oil & gas company to purchase the Ramok and Senabing Oil
Fields Technical Assistance Contract (TAC) located on the island of Sumatra,
Indonesia. The purchase price is US $13.6 million, with a cash and stock
component, for the acquisition of 100 per cent of the privately owned
companies which wholly own the Ramok and Senabing Oil Fields TAC.
Ramok and Senabing oil fields are located in the Sub Basin West of
Palembang, South Sumatra, Indonesia. The Ramok field had 51 wells drilled from
1910 to 1942, reaching peak production of 290,000 bbls/year in 1928. Senabing
field had 41 wells drilled from 1906 to 1931, reaching peak production of
200,000 bbls/year in 1907. Total current production from these fields is 85 to
100 bbl/day of low API oil.
Indonesia is the world's leading exporter of LNG, controlling more than a
quarter of the global market share. In 2000, Indonesia ranked 17th among world
oil producers, 1.9 percent of the world's daily production, with an average
production of 1.4 million barrels per day in 2000. The country also has proven
oil reserves of 5.1 billion barrels. Indonesia joined OPEC in 1963.
There are two development strategies for the Ramok and Senabing fields
and Vital will pursue both. The first is production under a primary depletion
strategy, focused on pool extensions and deeper drilling targets. Secondly,
implement an enhanced oil recovery (EOR) scheme in the form of a waterflood
for the existing productive horizons. Both depletion strategies require the
drilling of additional wells within and around the current field outline.
Drilling of these new infill and pool extension wells can be performed with
drill and complete costs estimated for under $75,000.
An EOR or waterflood strategy will primarily focus on the
repressurization and pressure maintenance of both fields for exploitation,
bringing forth sizable production gains. Implementation of a secondary
recovery scheme should allow production levels to approach historical volumes.
Historical production records indicate dozens of wells that produced in excess
of 150 bbls/day, with several wells exceeding 400 bbls/day. New facilities
will be required to handle the increased volumes of oil and water gained from
A 3D geophysical survey encompassing both fields will be conducted, prior
to any implemented depletion strategy. A 3D geophysical survey can provide a
superior understanding and evaluation of: (1) The geological deposition of the
reservoir's sand quality and thickness, (2) The reservoir's limits and
detailed mapping of the anticline's structure, (3) The significant faulting
direction and orientation within the reservoir envelope.
The 3-D geophysical survey can bring forth a significant reduction in the
number of dry & abandoned wells and locate restricted reservoir areas. There
are also strong indications that significant undeveloped reserves exist within
these fields, complimenting the existing reserves, as well as potential
further field extensions. The 3-D survey will clarify these opportunities and
may also provide the potential for an expansion of the current land base and
possible farm-in opportunities with the surrounding oil and gas rights
About Vital Resources
Vital Resources is a Calgary-based international junior oil and gas
exploration company which is continuing to review oil and gas opportunities.
Certain information regarding Vital contained herein may constitute
forward-looking statements within the meaning of applicable securities laws.
Forward-looking statements may include estimates, plans, anticipations,
expectations, opinions, forecasts, projections, guidance or other similar
statements that are not statements of fact. Although Vital believes that the
expectations reflected in such forward-looking statements are reasonable, it
can give no assurance that such expectations will prove to be correct. These
statements are subject to certain risks and uncertainties and may be based on
assumptions that could cause actual results to differ materially from those
anticipated or implied in the forward-looking statements. Vital's
forward-looking statements are expressly qualified in their entirety by this
The CNQ Exchange does not accept responsibility for the adequacy or
accuracy of this release.
For further information:
For further information: Vital Resources Corp., Kevin Worth, Investor
Relations, Phone: (403) 668-1645, Email: email@example.com, Website:
www.vitalrescorp.com; Syndicated Capital Corporation, A. Salman Jamal, Phone:
(604) 694-1994, Toll Free: 1-888-410-1994, Email: firstname.lastname@example.org,