West Newfoundland Update
ST. JOHN'S, NL, May 25, 2012, 2012 (Menafn - Canada NewsWire via COMTEX) --Trading Symbol:TSXV: CQV
Canadian Imperial Venture Corp. ("CIVC") is pleased to announce the following update provided by Shoal Point Energy Ltd. ("SPE"):
Today Shoal Point Energy Ltd. announced that they are excited by the positive test results and that the exceptional permeability, relatively high porosity, and extensive fracturing of the formation indicate that it should respond well to stimulation. The results continue to validate the play, and SPE expects that its future testing will confirm the Green Point shale as a major petroleum resource. "As a significant shareholder of SPE, CIVC is pleased with the accomplishments made to-date by SPE and look forward to continued success in the west Newfoundland Green Point oil-in-shale play," said Gerard Edwards, President and CEO of Canadian Imperial Venture Corp.
Recent Results of TestingShoal Point Energy Ltd. reported that it had completed testing operations on two test intervals in the 3K39 well at Shoal Point on the Port au Port Peninsula, western Newfoundland.
DST #2: The first test, designated "DST #2", was designed by the Companys consultants, NuTech Energy Alliance, of Houston, as an "Injection Test" or "Extended Leakoff Test" to measure engineering parameters for planning future stimulation of the Green Point shale reservoir, and not to flow-test the reservoir. This test involved the injection of fluid into the formation over a perforated 15 metre interval (1411-1426 metres) and monitoring of the rate at which the fluid was absorbed into the formation, from which two important parameters - permeability and pore pressure - could be measured directly. This test was completed over a period of 14 days and is considered a highly accurate, industry-standard measurement of these parameters. Permeability over this interval was measured at 20.74 microdarcies (for a 40 degree API crude), and pore pressure at 0.49 psi/foot. The Company and NuTech consider these results to be very encouraging for future development of the Green Point shale play under a full stimulation scenario (see further discussion below).
DST #3 occurred over the interval 1250 - 1350 metres which was perforated and swabbed through several cycles to measure inflow. Although good volumes of invaded drilling mud was recovered at the beginning of each swabbing period, returns declined toward the end of each period, and no free formation fluid inflow was recovered. However, indications of hydrocarbon inflow were seen in swab volumes, although these were not able to be directly measured. Considering the significantly higher than average permeabilities measured in the injection test, and numerous and diverse indications of hydrocarbons seen while drilling this section in the spring and summer of 2011, the Company believes that severe invasion and borehole skin damage has precluded the recovery of hydrocarbons from the formation at this time. This situation has been exacerbated because of (1) the length of time the borehole was open to the drilling fluid, and (2) the extent of pervasive natural fractures that have been studied from core, samples and the field, and which have been noted in earlier press releases. However, in the long run, the good permeability and porosity should increase the economic returns achieved with stimulation.
NuTech's Comparison Study of Green Point Shale to U.S. Shale BasinsThe Company has received a study from NuTech which compares average parameters of well known shale plays in the United States with those over the four test intervals, DST's #2 through #5, in the 3K39 well (DST #1 was not carried out after drillstring became stuck in the hole, as announced on April 19, 2012). This information is tabulated in the addendum affixed hereto. The Company emphasizes that these data represent average values compiled by NuTech from summary of past projects, literature search on the respective shale basins, and analysis of their NuView histograms of public area studies.
Several important results of the comparison are noted, as follows: (1) Green Point porosities (measured from logs) and permeability (measured on the injection test in DST #2) are considerably higher than the U.S. basins average, indicating that the Green Point has a high proportion of "cleaner", non- shale material within its cycles, and that pervasive fracturing may be contributing to porosity and permeability; (2) pore pressure (from the injection test) is comparable to that of the U.S. basins, i.e., the zone is slightly overpressured; (3) clay volumes are comparable to those of the U.S. basins; (4) TOCs are comparable to those of the U.S. basins; (5) oil content (total for the four combined DST intervals only, which represent approximately 82% of the net pay in the well), is 123.6 MMBOE/section, and is considerably larger than that for the two liquids plays presented in Table 1 (Niobrara, 21 - 43 MMBOE/section, and Utica/Mt. Pleasant, 4-16 MMBOE/section). The reader is also referred to previous petrophysical analysis of the Shoal Point 2K39 well and Long Point M-16 well, which returned values of 380 MMBOE/section, and 930 MMBO/section, respectively (see SPE news release of April 20, 2011).
Canadian Imperial Venture Corp. is an independent Canadian-based resource company holding a significant interest in Shoal Point Energy Ltd.
CANADIAN IMPERIAL VENTURE CORP.
"Gerard Edwards"Gerard Edwards, President 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.
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SOURCE: CANADIAN IMPERIAL VENTURE CORP.
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