TSX Venture Exchange: CQV
Frankfurt Stock Exchange: DFM
ST. JOHN'S, Sept. 10 /CNW/ - Canadian Imperial Venture Corp. ("CIVC/ the
"Company") announced today that it has entered into an agreement with
Tectonics Inc. of Calgary, Alberta, to acquire a 1.5% Gross Overriding Royalty
on Petroleum Permit No. 03-101 (Portland Creek) and No. 03-103 (Parson's Pond)
onshore Western Newfoundland. Under the terms of the agreement, CIVC will
issue 5 million Shares and 2.5 million Share Purchase Warrants ("Warrants").
These Warrants can be exercised at a price of $0.10 for a two-year period.
This transaction is subject to acceptance by the TSX-V Exchange.
On August 7, 2009, Nalcor Energy announced that it had acquired an
average 67% working interest in three exploration permits, including the
above-mentioned permits No. 03-101 and No. 03-103. Nalcor further announced
that it intends to conduct a $20 million drilling program starting as early as
this September. In its announcement, Nalcor stated the following: "Nalcor
believes in the oil and gas potential of Western Newfoundland and by
partnering with companies active in the area, we will bring together the
resources and capability to mount a comprehensive exploration campaign ..."
Should Nalcor be successful in establishing production, CIVC is entitled
to receive a 1.5% gross royalty on all production from permits 03-101 and
03-103, which royalty may be taken in cash or in kind. CIVC has no further
financial obligations in the exploration and development of the permits,
beyond the acquisition cost of the royalty.
"We are delighted to have made this acquisition, which allows us to
participate in the potential benefits of the Nalcor operated program, while
being exposed to none of the downside risk," said Steven Millan, CEO of CIVC.
"The Parson's Pond area has long been recognized by the industry as having
significant hydrocarbon resource potential. If Nalcor shows this to be true,
then it will be of great benefit to CIVC shareholders, many of whom are
intimately connected to the area and this Province."
In signing the above-noted agreement, CIVC is now involved in two areas
of Western Newfoundland - Shoal Point and Parson's Pond. The areas of Shoal
Point and Parson's Pond have had intermittent production between 1895 and 1925
with cumulative production of around 10,000 barrels of oil. The proposed
Nalcor program would be the first program designed to test the deeper and
larger prospects in the Cambrian Ordovician Carbonate Platform in the Parson's
Pond area and according to an independent assessment, the Nalcor properties
have the potential to contain an aggregate of 284 MMBbl of oil-in-place. CIVC
is currently working with its partners to design an exploration program that
will test the Green Point Shale formation on EL1070 at Shoal Point. An
independent assessment of the Green Point Shale potential on EL1070 states
that the property could contain 1 to 2 billion barrels of oil-in-place.
Canadian Imperial Venture Corp. is an independent Canadian-based energy
company with interests in petroleum exploration and development in western
Newfoundland and in western Canada. Eastern Canada is the home to such
developments as the Hibernia, Terra Nova, White Rose, Sable Island, Deep
Panuke, and McCully fields.
CANADIAN IMPERIAL VENTURE CORP.
By: "Steven M. Millan"
Steven M. Millan, P.Geo.
Chairman and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts 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;