VANCOUVER, May 21 /CNW/ - Petromin Resources Ltd. (TSX-V:PTR)
("Petromin") withdraws its previous press release of yesterday's date as
disclosure of natural gas quantities was non-compliant with National
Instrument 51-101 and replaces it in its entirety with the following.
Petromin yesterday announced that Terrawest Energy Corp. (TWE) has
discovered significant gas-bearing shale and multiple coal seams in its LHG
08-03 well which was drilled in November 2008.
TWE holds a 47% interest in a production sharing contract (PSC) with
China United Coalbed Methane Corp. Ltd. (CUCBM). The project, called
Liuhuanggou, is located in Xinjiang province and the PSC is located adjacent
to the capital city of Urumqi. The project covers over 162,000 contiguous
acres (TWE approximately 77,000 net acres) in the southern Junggar Basin. The
Junggar Basin is an active hydrocarbon producing area but no shale gas
discoveries have previously been announced.
"The Liuhuanggou project is in an easily accessible area and near
existing pipeline infrastructure, which we feel is a significant benefit to
future exploration and development prospects," said Ross Gorrell, TWE
President & CEO. "TWE has been working to establish a multi-play project at
Liuhuanggou for several years and we are excited about the potential of this
most recent development".
TWE had previously announced significant coal seam intersections in
earlier drilling dating back to 2006. The company intersected Jurassic
Xishanyao (J2X) formation coal seams with total thickness of over 40m. The J2X
is continuous over much of the PSC area and represents a significant Coal Bed
Methane (CBM) development opportunity on a stand alone basis.
The latest discovery is in the underlying and previously unexplored
Jurassic Badaowan (J1B) formation. Well LHG 08-03 intersected approximately
350m of J1B with multiple gaseous coal seams as well as over 170m of
gas-bearing shale before reaching total depth. Preliminary geological
reconnaissance of the J1B in surface exposure has indicated potential for
significantly greater thicknesses of prospective formations. "Over the past
3-5 years the development and production technologies for shale gas have been
established and are transferable across sedimentary basins, which we feel
could be utilized to further analyze and develop the resource potential of LHG
08-03" said Gorrell.
The PSC area covers an existing PetroChina oil and gas lease and China
National Petroleum Corp. (CNPC) PetroChina personnel are members of the
cooperative project team. TWE utilizes CNPC PetroChina for mud logging,
specialized geophysical services and is utilizing the services of the CNPC
PetroChina Karamay Lab for shale analysis.
Based on the 2008 results TWE will initiate further exploration of its
Liuhuanggou project lands in the coming weeks to obtain critical shale data,
further analyze coalbed methane in coal seams and further study essential
reservoir characteristics. The 2009 program will include geological survey of
target areas, seismic geophysical survey and drilling of selected locations.
The initial drilling program is aimed at confirming gas contents of coal
seams, sampling deeper prospective formations, confirming formation thickness
and confirming the prospectivity of the J1B.
These shale gas plays have the potential to supply enough gas to satisfy
North American demand for the future and are altering the energy balance on a
New shale gas discoveries of the same type have implications for
countries like China where such new gas supply may provide much needed
security and the basis for large-scale conversion of the economy from coal to
Petromin Resources Ltd. is a progressive international Petroleum and
Natural Gas Exploration and Production Company listed Tier 1 on the TSX
Venture Exchange. Petromin is a major shareholder in TWE and provides
professional services under the terms of a management agreement with TWE.
On Behalf of the Board of Directors,
A. Ross Gorrell
Neither 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.
This news release may contain certain forward-looking statements,
including management's assessment of future plans and operations, and capital
expenditures and the timing thereof, that involve substantial known and
unknown risks and uncertainties, certain of which are beyond the Company's
control. Such risks and uncertainties include, without limitation, risks
associated with oil and gas exploration, development, exploitation,
production, marketing and transportation, loss of markets, volatility of
commodity prices, currency fluctuations, imprecision of reserve estimates,
environmental risks, competition from other producers, inability to retain
drilling rigs and other services, delays resulting from or inability to obtain
required regulatory approvals and ability to access sufficient capital from
internal and external sources, the impact of general economic conditions in
Canada, the United States and overseas, industry conditions, changes in laws
and regulations (including the adoption of new environmental laws and
regulations) and changes in how they are interpreted and enforced, increased
competition, the lack of availability of qualified personnel or management,
fluctuations in foreign exchange or interest rates, stock market volatility
and market valuations of companies with respect to announced transactions and
the final valuations thereof, and obtaining required approvals of regulatory
authorities. The Company's actual results, performance or achievements could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurances can be given that
any of the events anticipated by the forward-looking statements will transpire
or occur, or if any of them do so, what benefits, including the amount of
proceeds, that the Company will derive there from. Readers are cautioned that
the foregoing list of factors is not exhaustive. All subsequent
forward-looking statements, whether written or oral, attributable to the
Company or persons acting on its behalf are expressly qualified in their
entirety by these cautionary statements. Furthermore, the forward-looking
statements contained in this news release are made as at the date of this news
release and the Company does not undertake any obligation to update publicly
or to revise any of the included forward-looking statements, whether as a
result of new information, future events or otherwise, except as may be
required by applicable securities laws.
For further information:
For further information: please visit www.petromin.ca, or contact: Mike
Suk at (604) 682-8831