Canadian Imperial Venture Secures License Extension from CNLOPB

Canadian Imperial Venture

Canadian Imperial Venture says that the Canada-Newfoundland and Labrador Offshore Petroleum Board ("CNLOPB") has approved a twelve month extension to Exploration Licenses 1070 and 1071. The extension requires a drilling deposit of $250,000 to be provided to the CNLOPB prior to January 15, 2007, upon which, Period 1 of the Licenses will be extended for twelve (12) months to January 15, 2008. The extension provides enough time for the Company to drill one or more prospects which are mapped by seismic on the Licenses, the most attractive of which is adjacent to Shoal Point in Port au Port Bay.

The Shoal Point play is within the prospective inversion fairway which also hosts the Port au Port No.1 discovery well, the Garden Hill South field and the Garden Hill North exploration target. At Shoal Point the target reservoir horizons are Cambro-Ordovician shelf carbonates similar to those encountered in the Port au Port No.1 discovery which has 148' of pay greater than 5% porosity in the Aguathuna Formation. Rich, mature source rocks of the Green Point Member are tectonically juxtaposed to the reservoir. Seal is provided by the shales of the Goose Tickle Formation and by approximately 5000' of the Humber Arm Allochthon, which directly overlies the Shoal Point Structure. Four-way structural closure at reservoir level has been mapped seismically in the footwall of the Round Head Fault, a well-recognized linear feature which forms the eastern boundary of the prospective inversion zone. Mapping by a previous operator indicated a trap area of between 5,200 and 35,500 acres, the variation arising from different assumptions on the position of a theoretical spill point.

The 1999 PanCanadian Shoal Point K-39 well was directionally drilled from an onshore well site in the hanging wall of the Round Head Fault to an offshore footwall target. At a total drilled depth of 3035 m, the well had failed to encounter its primary target, the Aguathuna Formation, having entered the footwall below the target. A subsequent experimental 3D survey conducted by Memorial University and tied to the well, confirmed that the target was missed and provided key information for re-mapping the structure. This re-mapping is currently underway and results to-date indicate that the prospect is intact and the prospect size is similar to that predicted by the former interest holders prior to drilling K-39. In addition, a preliminary review has concluded that it is feasible and cost effective to use the existing cased K-39 wellbore to drill the revised Aguathuna target, which is approximately 500 m shallower than prognosed in the original well.

Now that the twelve (12) month extension of the Exploration Licenses is confirmed, the Company and its partners will increase the level of effort required to get the proposed well drilled. Among other things, this will involve:

- completing the geophysical remapping;
- completing the well design and costing;
- acquiring the required permits from the regulatory bodies;
- accessing equipment and services.