Vulcan Minerals Files Plan for Flat Bay Development

Vulcan Minerals has filed a development plan pursuant to the Newfoundland and Labrador Petroleum Regulations in respect to the Flat Bay #1 oil discovery onshore Western Newfoundland. The purpose of this plan is to set out the proposed operations required to determine if the Flat Bay discovery is capable of commercial production and how that production will be undertaken. Phase I of the plan proposes the stimulation of Flat Bay #1 and the drilling of Flat Bay #2 approximately 1.5 kilometers east of Flat Bay #1. Before the final development plan is considered for approval or rejection the company must supply certain outstanding technical information. In the interim petroleum permit 96-105 will remain in force.

Results from Phase I of the operations will assist in defining key geological and engineering data towards completing a final development plan. It is anticipated that the Flat Bay oil pool may be initially developed on a single well battery basis allowing for incremental expansion with step-out development wells. Phase I operations are anticipated to commence in late 2003 with the stimulation of Flat Bay #1 followed by the drilling of Flat Bay #2. Further delineation drilling is planned in 2004.