Simon Bygrave company IR/PR for Nu-Oil & Gas has recently visited the Canadian district of Newfoundland, his view was to deliver valuable information to the investment community regarding operations on the ground. In the wake of wild speculation that Bygrave was serving a desktop tour of Garden Hill which included the companies PL2002-01(A) asset, Simon also produced a short video as today news confirmed Nu-Oil had signed heads of terms between PVF Energy and the companies wholly owned subsidiary Enegi Oil Inc. whereby PVF intends to farm-in carrying development costs into production thus committing in excess of $12m.
· Completing a 3D seismic survey (the “Seismic”) covering a minimum of the area of PL2002-01(A) in return for a 21% interest in the lease. The Seismic, which is expected to cost in excess of C$5million, will be funded 100% by PVF.
· Following the completion of the Seismic PVF will fund a new well into PL2002-01(A) (the “Farm-In Well”) in return for a further 49% interest in the lease. PVF will fund 100% of the cost of the Farm-In Well, anticipated to be in excess of C$12million. The location of the Farm-In Well will be determined by agreement between Enegi and PVF.
Over time investors have lost many of the facts hidden away, instead choosing to speculate on the arduous investment into Newfoundland by Nu-Oil rather than noting the significant chain of events in the businesses turnaround.
- Enegi Oil Inc., Nu-Oil’s 100% owned Canadian operating subsidiary, holds working interests in western Newfoundland through an onshore production lease, PL2002-01(A), and an offshore exploration licence, EL1070. PL2002-01(A) and EL1070 are located on and around the Port au Port Peninsula, western Newfoundland.
- PL2002-01(A) allows for the production of hydrocarbons from an onshore area on the Port au Port Peninsula, western Newfoundland. The initial lease, issued in 2002, is the first and only onshore production lease granted by the Province of Newfoundland and Labrador.
- PL2002-01(A) lies over the Garden Hill Field Trend, which is a proven hydrocarbon bearing accumulation that is estimated to contain between 83 and 341MMBO in-place based upon internal reservoir models, increasing to 136 and 591MMBO including the mapped offshore extent. PL2002-01(A) itself covers an area of 16km² and holds between 21 and 97MMBO of the total estimate for the Garden Hill Field Trend.
- Initially discovered in 1995 by Hunt Oil with the “PAP#1” well, the conventional Lower Ordovician, Aguathuna Formation reservoir has since been penetrated by three appraisal side-tracks, which support the theory that reservoir productivity is linked to hydrothermal alteration. Extensive testing at the Garden Hill Site observed a lack of pressure depletion, indicating that a minimum connected volume in excess of 100 million barrels of oil is present in the Garden Hill Field Trend. The oil produced has been of high quality (51° API).
The PaP#1 well which produced over 2,000 barrels per day when initially drilled was followed by two sidetracks from PAP#1, the second of which (ST#2) produced oil at the rate of 200 barrels per day during tests. Prior to re-entry in January 2007, production tests from Garden Hill Field produced over 22,000 barrels of oil.
Clearly, the recent news demonstrates progress, none more so than the energy and enthusiasm conveyed by Nu-Oil’s recently appointed investor relations officer, we hope to speak to Simon on his return as we wish the team well at Garden Hill.
The author was not remunerated nor holds shares in the company