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VVC Exploration Corporation, dba VVC Resources, (" VVC ") or (the "Company"), (TSX-V:VVC and OTCQC:VVCVF) announces the following:
Perforation of 2 Wells in Syracuse
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Global Oil & Gas
Overview
Global Oil & Gas (ASX:GLV) is an Australia-based oil and gas exploration company focused on developing its recently acquired Tea LXXXVI oil and gas block in Peru, located in the Tumbes-Progreso basin and near the prolific Talara basin. The project’s hydrocarbon exploration potential leverages Peru’s long history as an oil and gas producer, which dates back to the late 19th century when the country drilled its first well more than 150 years ago.
Oil and gas production in Peru is led by the Peruvian National Agency of Hydrocarbons (Perupetro). The country is resource-rich, with over 421 million barrels (MMbbl) of proven and probable reserves located in the 18 sedimentary basins.
Hydrocarbon fields, both on and offshore, in the Tumbes-Progreso and Talara basins currently contribute over 1.4 billion barrels of domestic oil production and 1.7 trillion cubic feet (TCF) of natural gas production. The Talara basin itself has cumulatively produced more than 1.6 billion barrels of oil and is surrounded by multiple historic and currently producing oil and gas fields.
GLV’s Tea LXXXVI project is the result of a technical evaluation agreement (TEA) with the Peruvian National Agency of Hydrocarbons (Perupetro), which provides GLV and its partner, US-based oil and gas exploration company Jaguar Exploration, the exclusive right for greenfield exploration activities over the TEA area. GLV holds an 80-percent interest in the asset with the remaining 20 percent held by Jaguar.
The project comprises a 4,858-square-kilometer oil and gas block in proven offshore hydrocarbon-bearing basins in Peru, including the prolific Talara basin. Offshore, Peru remains dramatically underexplored and has immense potential for hydrocarbon plays.
The TEA LXXXVI project entitles GLV to a two-year assessment of the block with the option to extend it for one extra year. This requires no minimum spending commitments from GLV. As such, GLV can focus on high-impact, low-cost exploration activities for the next 12 to 18 months, which includes desktop studies, and reprocessing of old 3D seismic data, among other activities. This is beneficial for GLV as it provides the company with an inexpensive and exclusive two-year option to convert all or part of the TEA LXXXVI area into a licence contract. In addition, news flow from low-cost exploration activities should keep investors excited about the company’s future.
Considering the block's potential, GLV has appointed a world-class technical team with more than 200 years of collective experience to develop the TEA LXXXVI asset. Several of the newly appointed team members have previously worked on the area covered by GLV, which should help in fast-tracking the development of the block. The team comprises proven oil finders with collective discoveries of more than 480 million barrels of oil equivalent of 2P reserves and more than 400 million barrels of oil equivalent in contingent resources in Peru and Colombia.
The experience of working in the TEA LXXXVI property and surrounding fields will be vital for GLV to expedite the understanding and evaluation of the asset.
Company Highlights
- Global Oil & Gas Ltd. is an Australia-based oil & gas exploration company focused on developing its recently acquired oil and gas block in Peru, TEA LXXXVI
- The TEA LXXXVI project comprises a 4,858 square-kilometer oil & gas block in proven hydrocarbon-bearing basins offshore including the prolific Talara basin (1.6 billion barrels produced, so far). GLV holds an 80 percent interest in the asset with the remaining 20 percent held by US-based oil & gas exploration company, Jaguar Exploration.
- The block is in proximity to multiple historic and current producing oil & gas fields. This includes the Corvina oil field, producing 4,000 barrels of oil per day, and the Alto-Pena Negra oil field which is currently producing around 3,000 barrels of oil per day, along with a total historical production of more than 143 million barrels of oil. This increases confidence regarding the hydrocarbon exploration potential of TEA LXXXVI.
- The company is undertaking a detailed work program on the project, including 3D seismic data processing, and geological and geophysical studies. This should help GLV generate certified prospective resources along with three to four drill-ready targets over the next 12-18 months.
- A world-class technical team with more than 200 years of collective experience was appointed by GLV to develop and advance the TEA LXXXVI offshore block.
- The company's other projects include the Georgina Basin project (EP-127) and the Sasanof Prospect (WA-519-P).
- EP-127 is located in the Southern Georgina Basin in the Northern Territory. The Basin covers more than 100,000 square kilometers in the Northern Territory and the western part of Queensland. This basin is one of the most prospective onshore basins in Australia with potential for both very large conventional and unconventional oil and gas deposits.
- The Sasanof Prospect is located in permit WA-519-P, where GLV holds a 25 percent interest. The Sasanof Prospect covers an area of up to 400 square kilometers and is estimated to contain a 2C prospective resource of 7.2 trillion cubic feet of gas and 176 million barrels of condensate.
Key Project
TEA LXXXVI Project
This oil and gas block is located on the northwest coast of Peru in the Tumbes-Progreso basin, in water depths that range from 100 meters to 1,500 meters. The project spans 4,858 square kilometers and is surrounded by historical and current producing oil and gas fields. The block includes the Corvina oil field which generated past production rates of up to 4,000 barrels of light oil per day. In the south is the Talara basin, which is one of the most productive basins in Peru having produced more than 1.6 billion barrels of oil. To the southeast is the Alto-Pena Negra oil field, one of Peru’s most productive fields, currently producing around 3,000 barrels of oil per day and with a total historical production of more than 143 million barrels of oil.
The project benefits from the presence of excellent infrastructure, including a refinery that is only 70 kilometers away. The block has seen exploration in the past, specifically in the early 1970s, when three exploration wells were drilled, all showing the presence of oil. In addition, historical data from 2D seismic surveys and more than 3,800 square kilometers of 3D seismic surveys are available for processing. The rarity of finding a large, undrilled area in a proven hydrocarbon basin system with completed 3D surveys is noteworthy.
The historical discoveries were mostly located in shallow waters and could prove to be an easy target for GLV. In addition, there is a high likelihood of further discoveries in deeper waters (400 meters to 800 meters). Utilizing historical seismic data, GLV along with its partner Jaguar have identified prospects and leads in the block that can be classified as prospective resources. Of particular interest are two main prospects – Bonito and Tiburon.
The company has planned extensive work over the next 12 to 24 months. The first 12 months will focus on reprocessing 1,000 square kilometers of 3D seismic data and carrying out amplitude versus offset (AVO) studies. The following 12 months will then focus on geological and geophysical studies including 3D seismic interpretation and structural analysis. By the end of two years, GLV aims to generate certified prospective resources along with three to four drill-ready targets. In addition, GLV is looking for a farming partner to cover the cost of drilling. The block has a billion-barrel potential according to Perupetro.
TEA’s 2-Year Work Commitment
Management Team
Chris Zielinski – Non-executive Chairman
Chris Zielinski is the chairman of Global Oil & Gas with considerable experience in capital raisings, takeovers, M&A, due diligence, commercial drafting, Corporations Act and ASX Listing Rule compliance, advising on corporate governance issues and providing general corporate and commercial advice. He is a graduate of the University of Notre Dame Australia with a Bachelor of Laws and Bachelor of Commerce (finance). Following graduation, he worked in boutique Western Australian law firms specializing in commercial and corporate law. He is currently associated with Nova Legal and holds the title of senior associate, corporate and commercial.
Patric Glovac – Managing Director
Patric Glovac co-founded GTT Ventures in 2013, a boutique corporate advisory firm specializing in the resource and technology sector. Glovac is currently executive director of Tao Commodoties (ASX:TAO), non- executive director of ASX-listed Cirrus Networks (ASX:CNW), Robo 3D (ASX:RBO) and Force Commodities (ASX:4CE).
Troy Hayden – Non-executive Director
Troy Hayden has more than 25 years of experience in the upstream oil and gas industry. He has worked on numerous oil and gas asset acquisitions, divestments, and M&A transactions. He is currently the business development manager at Transborder Energy, a small-scale Floating LNG company. He was the CEO at ASX-listed Tap Oil for six years and worked at Woodside Petroleum for 12 years, where he held a number of senior leadership positions. He has consulted with several resource companies, working with First Quantum Minerals (acting CFO), QR National (group treasurer) and Western Gas.
Anna Mackintosh – Company Secretary
Anna Mackintosh has over 26 years of commercial experience, including 11 years with BHP and 10 years with AFSL holder Kirke Securities as compliance manager, finance manager and responsible executive. In addition to GLV, she also serves as company secretary of TAO Commodities (ASX:TAO), Marquee Resources (ASX:MQR), and XS Resources.
Gas Flow from Permeable Zone Provides Unexpected Upside
HIGHLIGHTS
- Daydream-2 reaches Total Depth of 4,300 metres
- Permeable gas bearing zone discovered - with gas flowed to surface without stimulation
- Gross interval of 607 metres intersected with peak gas shows of 800 units
- Drilled ahead of schedule and under budget
An unexpected naturally permeable gas bearing zone has been discovered – with gas flowed to surface without stimulation:
Flare at Daydream-2
Overnight Daydream-2 reached a Total Depth (TD) of 4,300 metres. This was approximately 100 metres deeper than originally planned, as the well continued to demonstrate elevated levels of gas in excess of pre-drill estimates. The deeper TD also allows for greater operational flexibility in relation to the next few phases of the Company’s appraisal plans for the well.
During the course of drilling the final 100 metres of the well, a rapid increase in the rate of well penetration (“drill break”) was encountered. This drilling break was associated with a gas influx from the formation into the well bore.
Using drilling best practice, this gas influx was circulated out of the well to the rig’s flare – see short video on the Company’s youtube channel - https://www.youtube.com/shorts/onDTRPqfwyo
The volume of gas flared was estimated at the wellsite to be approximately 50,000 cubic feet. As a result of the influx, the drilling fluid was “weighted up” and the well safely and successfully drilled to a TD of 4,300 metres.
To encounter a permeable reservoir section this deep in the well provides significant upside for Elixir’s Grandis Gas Project. Substantial further work is required to truly establish the implications of this discovery, but these could be materially positive.
During the course of drilling through the Permian strata, gas shows continued through the primary objective reservoir sections. Peaks of up to 800 units were noted, consistent with nearby wells. In total, a gross interval of 607 metres was intersected. The dominant lithologies within the interval were sandstones, coals and siltstones.
Gas shows on seismic line between Daydream-1 and Daydream-2
The well has been drilled to a total depth greater than planned, in a timeframe and at a cost less than budgeted. That was the case even allowing for time spent acquiring data for Origin Energy under the Information Sharing Agreement announced to the ASX on 6 November 2023. Origin has now paid Elixir in full for the services rendered under this Agreement.
Wireline logs will now be acquired and a petrophysical evaluation undertaken. The well will be then cased and suspended. Once all the data has been compiled, Elixir will finalise its forward plan for extensive evaluation, completion and production testing of this well.
Elixir’s Managing Director, Mr Neil Young, said: “Flowing gas without stimulation from a deep section is immensely exciting for Elixir. Although these are still early days, the unexpected intersection of a permeable gas zone this deep in the section may unlock another new Australian deep gas play and will be of interest to many parties. Furthermore, on almost every other front the well has exceeded expectations – in terms of geology, engineering, economics and project management.”
Click here for the full ASX Release
This article includes content from Elixir Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Daydream-2 Progress Report
HIGHLIGHTS
- Daydream-2 intersects primary target Kianga Formation ahead of schedule
- Well intersects strong gas shows, with the first gas peak measuring 777 units (38 times above background)
- Total depth and wireline logging expected within the next week
Excerpt from mud log at Daydream-2 over the primary target
Daydream-2 has intersected the primary target Kianga Formation at 3,694 metres, close to the original prognosis, with elevated gas shows immediately recorded by the mud logging team. The well intersected the primary objective after 19 days of drilling operations, which is several days ahead of schedule. Upon intersecting the first coal and sand, the gas shows increased from 20 units to a peak of 777 units, which represents a 38 times increase above background.
The sands were described as very fine to medium grained and friable. The coal was described as vitreous to sub-vitreous and sub-blocky. These descriptions are in line with original expectations and similar to the Daydream-1 gas discovery well.
The well will now drill the remaining reservoir section to a Total Depth (TD) of approximately 4,200 metres, then wireline logs will be run and a petrophysical evaluation undertaken. The well will be then cased and suspended for future stimulation and testing operations, planned for the New Year.
Engineers & geologists in Daydream-2’s Mudlogging Unit
Elixir’s Managing Director, Mr Neil Young, said: “The drilling performance at Daydream-2 continues to impress. So far the well has been drilled ahead of schedule and under budget. The excellent gas shows encountered as we have entered our primary target meet our appraisal objectives and we look forward to reaching total depth and determining the overall extent of the gas bearing formations very shortly.”
Click here for the full ASX Release
This article includes content from Elixir Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Daydream-2 Progress Report
HIGHLIGHTS
- Intermediate section of well drilled to 2,915 metres
- Logs successfully acquired for Origin Energy under the Information Sharing Agreement
The intermediate section of the Daydream-2 appraisal well has been drilled to 2,915 metres and is currently being cased & cemented.
In recent days wireline logs have been successfully obtained for Origin Energy (at its sole cost) under the recently announced Information Sharing Agreement. In addition to the incremental costs of this logging program, Origin is now due to pay $1 million to Elixir under this Agreement.
Elixir’s Managing Director, Mr Neil Young, said: “The drilling of Daydream-2 continues to go very well and we are on track to meet our estimate of around one month to get to total depth. This week we successfully obtained logs for Origin Energy for its carbon capture and storage project in the region – demonstrating the emerging “Energy Super Basin” that we consider the Taroom Trough will become.”
Click here for the full ASX Release
This article includes content from Elixir Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
VVC Perforates 2 Wells for Helium and Natural Gas and Results of Post-AGM Board Meeting
VVC is proud to announce significant progress in its Syracuse Project, aimed at helium and natural gas extraction. The Company has successfully completed the perforation of two critical wells: Hodgson 1-17 and T-Spiker 1-7.
On November 16, 2023 , VVC made a pivotal announcement regarding the Syracuse Project's progress in helium and natural gas extraction. The Company proudly disclosed the successful connection of two wells, Durler 2-21 and Levens 2-31 to the Tumbleweed Pipeline, marking a significant stride in the Company's strategic initiative. In conjunction with this achievement, VVC reiterated its commitment to completing six additional wells, including the previously mentioned Hodgson 1-17 and T-Spiker 1-7.
This development is a crucial step in VVC's strategy to enhance its helium and natural gas production capabilities. "The perforation of these wells positions VVC to tap into the high-potential Syracuse Project more effectively," stated Jim Culver, CEO of VVC Resources.
The Syracuse Project represents VVC's commitment to innovative and sustainable resource extraction in helium and natural gas.
Appointment of Officers
In first Board Meeting after the re-election of directors at the Annual General Meeting of shareholders (the "AGM") held yesterday, the Directors reappointed the following executive officers for VVC and the Chairman of the Board of Directors for the ensuing year:
- Jim Culver, President and CEO
- Terrence Martell, Chairman of the Board
- Kevin Barnes, Chief Financial Officer
- Michel Lafrance, Secretary-Treasurer
- Bill Kerrigan, President of Plateau Helium Corporation.
In addition, the directors also appointed directors to the Company's various standing committees and a Chairman for each Committee for the ensuing year.
Option Grant
At the same Board Meeting, the Directors also granted incentive stock options under its stock option plan, to officers, directors and consultants of the Company, to purchase up to an aggregate of 14,650,000 common shares, representing 2.96%% of the outstanding shares of the Company. The stock options are exercisable at a price of CA$0.08 per share expiring November 20, 2033. The exercise price was fixed above the minimum allowable price by the TSX Venture Exchange policies. The options, granted in accordance with the provisions of the Company's stock option plan, are subject to the TSX Venture Exchange policies and the applicable securities laws. Of the Options granted, 45.4% were to directors, 30.7% to Officers and 23.9% to Employees/Consultants of the Company.
About VVC Resources
VVC engages in the exploration, development, and management of natural resources - specializing in scarce and increasingly valuable materials needed to meet the growing, high-tech demands of industries such as manufacturing, technology, medicine, space travel, and the expanding green economy. Our portfolio includes a diverse set of multi-asset, high-growth projects, comprising: Helium & industrial gas production in western U.S.; Copper & associated metals operations in northern Mexico; and Strategic investments in carbon sequestration and other green energy technologies. VVC is a Canada-based, publicly-traded company on the TSXV (TSX-V:VVC). To learn more, visit our website at: www.vvcresources.com .
On behalf of the Board of Directors
Michel J. Lafrance, Secretary-Treasurer
| For further information, please contact: | ||
| Patrick Fernet - (514) 631-2727 | or | Mike Culver - (202) 531-6559 |
| E-mail: pfernet@vvcexploration.com | E-mail: mike@vvcresources.com |
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
News Provided by GlobeNewswire via QuoteMedia
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