Projects
Labrador Offshore
The company and its 50% working interest partner, Investcan are in receipt of Exploration Licence 1107 from the Canada Newfoundland and Labrador Offshore Petroleum Board (CNLOPB) with a work commitment bid of $9,601,000. Vulcan and Investcan have now posted a refundable security deposit equal to 25% of the work commitment bid with the CNLOPB and secured the exploration licence.
The joint bidding agreement between Vulcan and Investcan provides that Investcan shall initially post 100% of the refundable security deposit. Vulcan’s obligation to pay 50% of the security deposit will be carried by Investcan for two years without dilution of Vulcan’s working interest in the exploration licence. If Vulcan assumes its 50% share of the security deposit at the end of two years, it shall preserve its 50% working interest in the exploration licence. If Vulcan does not assume its 50% share of the security deposit at the end of two years, Investcan shall carry the obligation up to an additional two years subject to a dilution of Vulcan’s interest in the licence up to a maximum of 22% (i.e.: Vulcan would maintain a minimum 28% working interest) at which time Vulcan will assume its share of the security deposit.
An exploration licence confers the right to explore for petroleum for an initial Period I of six years with a possible additional period of three years. Exploration Licence 1107 covers 236,525 hectares (584,000 acres) of the Hopedale Basin on the Labrador continental shelf. It is situated adjacent to and on trend between the Bjarni-North Bjarni discoveries (approximately 3.1 trillion cubic feet of natural gas) to the northwest and the Gudrid discovery (approximately 924 billion cubic feet of natural gas) to the southeast. The gas quantities for the Bjarni-North Bjarni and Gudrid discoveries are resources as published by the CNLOPB. The company has carried out an internal evaluation of the licence and has identified prospects and leads worthy of further exploration in the context of an emerging gas play. The opportunity is open for joint venture participation by interested parties.
Click for map of the Hopedale Basin Licences
