Frankfurt Exchange: DFM
ST. JOHN'S, April 13 /CNW/ - Canadian Imperial Venture Corp. ("CIVC" / the "Company") is pleased to provide this update on the Green Point oil-in-shale play in Port-au-Port Bay, western Newfoundland.
During the first quarter of this year, the Company, in conjunction with its partners in the play, Shoal Point Energy Limited ("SPE") and McLaren Resources Ltd. ("McLaren"), completed the scientific and technical work for the proposed drilling program in Port-au-Port Bay, western Newfoundland. The initial well will be drilled from the tip of Shoal Point to a subsurface target under Port-au-Port Bay. The planned total depth of the new well, designated Shoal Point 3K-39, is 2200m measured depth (1460m subsea) and the objective of the well is to test the thick oil-bearing section in the Green Point shale which was encountered in the 2K-39 well, drilled in 2008.
Detailed examination of the data from the 2K-39 well showed that a section in excess of 500m vertical thickness was encountered in the Green Point formation and associated organic-rich rocks, with elevated gas chromatograph readings and drilling breaks. Examination of the drilling mud showed that some 54 barrels of oil had been produced into the wellbore while the Green Point section was being drilled. Subsequent analysis of the logs and cuttings from the well provide additional evidence that the section is oil-bearing.
Due to adverse hole conditions, testing of the prospective section in the 2K-39 well could not be undertaken. The proposed new well, 3K-39, will essentially twin the earlier well and is specifically designed to produce a successful well test, including the production of oil to surface. In addition to the recent evidence from 2K-39 of the prospectivity of the Green Point, historic records indicate that wells drilled on Shoal Point in the early 1900's, produced oil at rates up to 20 barrels per day from shallow depths in the naturally fractured shales. Currently, horizontal drilling and hydraulic fracturing techniques are used to produce economic flow rates from shale plays which are producing elsewhere. It is anticipated that these techniques will be used during the development phase of this project.
Dragon Lance Management of Alberta has been engaged by the group to manage the drilling project, including well design, rig procurement, permitting, drilling and testing. The design of the well is complete and rig procurement is underway. Permit applications will be made as soon as the rig is chosen. The target date for commencing drilling is mid-2010, subject to rig availability and permit approval by government. Drilling time is estimated to be approximately 15 days. It is noted that the 2K-39 well, which will be twinned by the new well, was managed 1 of 2 by Dragon Lance who have developed a significant body of operating experience in the Port-au- Port area, including zero incidents of injury and environmental problems.
"Our internal work as well as the work of independent external experts, indicates that the undiscovered resource under Port-au-Port Bay, could be very significant. The group is currently obtaining further independent expert opinion by commissioning AJM Petroleum Consultants of Calgary, Alberta, to produce a resource assessment report based on all current data. This report is expected to be completed in the near future," said Steven Millan, CEO of CIVC. "The planned well will add valuable information on the resource, in particular, on the producability of the Green Point."
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
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OF THIS PRESS RELEASE.
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.
SOURCE Canadian Imperial Venture Corp.
For further information: For further information: Canadian Imperial Venture Corp., (709) 739-6700, Fax: (709) 739-6605, firstname.lastname@example.org; www.canadianimperial.com