CALGARY, Oct. 12 /CNW/ - Vital Resources Corp. (CNQ Exchange - VITL;
Frankfurt Stock Exchange - VZN) has reached a Letter of Intent (LOI) agreement
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.
History of Ramok and Senabing Fields
According to historical records, Ramok and Senabing oil fields were
discovered by the Dutch (BPM) in the early 1900s. These discoveries were
carried out by field mapping of river traverses and generating surface
geological maps. The presence of oil and gas seeps in the area were well known
at the time.
In the ensuing decades the two fields were developed with numerous wells
on close spacing. The Ramok field had a total of 51 wells drilled from 1910 to
1942. This development resulted in a peak production of 280,000 bbls/year,
with an aggregated peak daily production of 900 bbls/day. The field was still
producing in 1942, but was abandoned due to the invasion during WW II.
The Senabing field had a total of 41 wells drilled from 1906 to 1931.
This development resulted in a peak production of 180,000 bbls/year in 1907,
with an aggregated peak daily production of 600 bbls/day.
After nearly 60 years during which no efforts were made to re-establish
production, exploration was resumed in 1979 and 1988. PERTAMINA conducted
gravity and seismic surveys, along with geological mapping over the two
fields. Development drilling was initiated in 1996 by PT RADIANT RAMOK
SENABING et al, with the drilling of four wells. Commercial production was
finally restored to Senabing in 2001 and Ramok in 2005. Total current
production is approximately 85 bbls/day, which is primarily from Senabing
field, only due to well count.
Geological & Reservoir Discussion
Ramok and Senabing oil fields are located in the Sub Basin West of
Palembang, South Sumatra. These oil fields are anticline structures consisting
of sandstone reservoirs, with significant faulting. The Ramok and Senabing
fields have two productive horizons, the Muara Enim (MEF) and Air Benakat
formations (ABF). Whereby, the Senabing field has a majority of the productive
zones in the Air Benakat formation.
The average drilling depth for Ramok's deepest proven productive horizon
is approximately 3,700 feet (1,200 metres). Whereas Ramok's primary productive
interval resides, on average, at approximately 2,000 feet (650 metres). The
Senabing Field's deepest proven productive horizon is, on average,
approximately 1,800 feet (600 metres). Numerous deeper horizons up to
9,800 feet (3,000 metres) exist below the above captioned production zones in
both fields; offsetting analogous fields have proven production in these
Vital's team is currently developing an enhanced oil recovery and
depletion strategy (waterflood) for the Ramok and Senabing oil fields which
will be outlined shortly. There are also strong indications that significant
undeveloped reserves exist within these fields, complementing the existing
reserves, as well as potential further field extensions.
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,