Premium Acquires More Seismic Near Boyne Lake
Premium Petroleum Inc. has acquired an additional four lines of seismic data totaling 23 km (14 miles) in length, on lands adjacent to the discovery well on its Boyne Lake Flowing Oil Sands Prospect. The company now has acquired seven lines of seismic totaling approximately 31 km (19 miles) in length.
Seismic utilizes sonic imaging technology. The objective of the seismic acquisition program is to create a picture of the geologic structure that emerges from the processing and interpretation of the seismic data. It becomes particularly meaningful when the seismic picture collaborates the geologic mapping. This collaborating evidence provides a powerful tool in determining anomalies and optimum drill location(s) within those anomalies. Therefore, seismic becomes an important guide or tool in the acquisition of additional lands.
"Upper Grand Rapids" zone: Management was anticipating that the primary target "Upper Grand Rapids" zone would contain natural gas reserves, similar to nearby wells. This zone was perforated, and gas was absent so a temporary cap was placed on the well. After 5 or 6 days the well was checked again, and much to the delight of management, an approximate 250 meters (800 foot) head of oil was present in the well bore - evidence that we had encountered Oil Sands, but even more significant, Flowing Oil Sands In accordance with Alberta Energy's designation, our project is categorized OIL SANDS; located in the Cold Lake Oil Sands district.
The significance of Flowing Oil Sands is that expensive mining and recovery methods are unnecessary, as conventional pumping methods can be used for recovery of the oil.
As no one else in the area is producing oil from this Upper Grand Rapids zone, we have made a New Pool Discovery.
Management continues analysis for the optimal drilling program to exploit the pool. It is anticipated that horizontal drilling technology will be utilized, and according to our in-house engineering calculations, could result in production rates ranging from 100 to 120 bopd (barrels of oil per day per well).
According to the Petroleum Economist: "Although tar sands occur in more than 70 countries, the bulk is found in Canada in four regions: Athabasca, Wabasca, Cold Lake, and Peace River; together covering an area of some 77,000 km2. In fact, the reserve considered to be technically recoverable is estimated at 280-300 Gb (billions of barrels), larger than the Saudi Arabia oil reserves (optimistically) estimated at 240 Gb. The total reserves for Alberta, including oil not recoverable using current technology, are estimated at 1,700-2,500 Gb."
Boyne Lake Flowing Oil Sands Prospect: is located approximately 100 km (62 miles) north east of Edmonton in the Province of Alberta, Canada. Northern Alberta has been the subject of significant interest over the past years where major tar sand oil and Bitumen have been discovered, and is currently being refined or in the process of development by oil companies such as Suncor, Syncrude and Synenco.
Bruce A. Thomson, B.A.Sc.; President & CEO stated: "We are excited to report that as a junior oil and gas company we have discovered a New Pool of Flowing Oil Sands. Seismic technology coupled with good geology helped us find the New Pool, and I am convinced that additional seismic technology coupled with additional good geology will help us expand the New Pool."
Premium is an emerging junior oil and gas company financially well connected, coupled with a strong management and technical team focused on exploiting oil and gas reserves in the Western Canadian Sedimentary basin to 6000 feet in depth. Management intends to pursue a growth strategy through Land Assembly, Joint Ventures (Farmin / Farmout), and Acquisitions.
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