Deer Lake Basin Properties
EP93-103 Birchy Ridge Block
Deer Lake Oil & Gas Inc. holds a 100% working interest in the EP93-103 subject to a 4% overriding royalty in favour of Vinland Petroleum Inc.
EP93-103 lies in the Deer Lake Basin astride the northern part of that basin's Central Flower Structure.
EP93-103 covers some 15,300 hectares in the western Cormack Sub-basin and some 13,900 hectares in the eastern Howley Sub-basin.
Both sub-basins are near the Town of Deer Lake onland Western Newfoundland and both have excellent access and logistical features.
The present Trans Canada Highway cuts through the southern end of EP93-103 and the old Trans Canada Highway parallels the north end of EP93-103. A network of woods roads allows access to much of the Permit but access to particular potential well sites may involve winter drilling activities and/or the building of access roads.
General Geology
EP93-103 is overlain at surface by Carboniferous fluvial, alluvial and lacustrine sediments consisting of the Deer Lake Group (which include the Humber Falls, Rocky Brook and North Brook Formations) and the older Anguille Group.
The same Ordovician Carbonate platform that was targeted and successfully tested by the Port au Port #1 discovery well on the Port au Port Peninsula is present beneath the Carboniferous succession on EP93-103 and was penetrated for the first time by the Western Adventure #2 well in 2002.
Exploration History
Three exploration wells (all without seismic) were drilled in 1956 on or adjacent to EP93-103.
Claybar
#1 was drilled in 1956 to a depth of 457 m at a location 1 km north of the
northern boundary of the Block and encountered a gas blowout at 335 m.
Claybar #2 was drilled in 1956 to a depth of 853 m at a location 1 km west of
the southwest corner of the Block and was dry.
Claybar #3 was drilled in 1956 to a depth of 732 m on the Western Adventure
Block and had minor gas shows.
A number of shallow (less than 250 m in depth) mining core holes provide a significant geological database with regard to the Deer Lake Group sediments.
A 13 km seismic line was shot in 1995 along Paddy's Reef Road in the center of the Permit by the Centre for Earth Resources Research (CERR), Memorial University. The interpretation of this seismic data was published by Wright, J.A., et. al. in 1996 ("The Deer Lake Basin, Newfoundland: Structural constraints from new seismic data. In Bulletin of Canadian Petroleum Geology, Vol. 44, pp. 674-682). This dataset provided the first subsurface image of the sub-basin and gives insight into the structural and stratigraphic depositional history of the sediments.
In 1997 and 1998, 37 kilometers of multifold reflection seismic data was shot in the Cormack Sub-basin, 22 kilometers of which lies on EP93-103
The Deer Lake Basin is also covered by a grid of gravity and aeromagnetic data. This data supports the seismic interpretation of the Western Adventure Structure.
Western Adventure gas condensate discovery
In 2000/2001, the Western Adventure #1 well was drilled by Deer Lake Oil & Gas to a depth of 1879m on the Western Adventure Structure on a seismic line at a cost of $1.5 million. It tested gas at a maximum rate of 100,000 cubic feet per day on Drill Stem Test. A condensate show was also encountered.
The well encountered a 1350 m sandstone and conglomerate dominated section of the North Brook Formation containing porous intervals.
An analysis of the well results by the Calgary consulting firm, ServiPetrol, concluded that "the microfractures (encountered in the well) provide the necessary permeability to achieve the small gas rates observed during DST #4" and that "Due to the pervasive nature of tectonic fractures it is likely that future wells could intersect macrofractures in which case the gas rates would be much more significant".
Based on these findings and concerns with regard to water saturation levels at Western Adventure #1, ServiPetrol advised that exploration be sustained by drilling a new well up structure.
Western Adventure #2 stepout well - the Cambro-Ordovician platform encountered at depth
The subsequent well, Western Adventure #2, was drilled in 2002 and is located on the Western Adventure Structure 7 km north of the Western Adventure #1 location. It is presently suspended at 1325m. The well encountered a 760 m Carboniferous clastic section lieing unconformably on the Cambro-Ordovician Carbonate platform and encountered gas shows. Based on these well results and subsequent seismic re-processing, a target interval not yet drilled exists in the deeper section of the Carbonate platform. This target may be best tested at a location approximately 1.5 km west of the Western Adventure #2 location and remains a valid future exploration option.
An interval of hydrothermally vuggy dolomitization was encountered in the carbonate platform section at a depth of 1227m in this well.
The presence of significant east-west trending wrench
faults may contribute to increased hydrothermal dolomitization (
Potential Reservoirs
Two principal target reservoirs exist on EP93-103. The upper targets consist of sandstones and conglomerates of the Carboniferous aged North Brook Formation which at the Western Adventure #1 location is 1350 m thick with an overall sandstone and conglomerate to siltstone and shale ratio of 60%. Additional target reservoirs exist at depth in Ordovician aged carbonates particularly fractured and hydrothermal fluid induced dolomitization..
Source Rock
The main petroleum source rocks for the area are the shales of the Rocky Brook Formation. Analyses of samples by Hamblin et al indicate that this is an excellent Type I (oil prone) and Type II (gas prone) source rock with TOC's (total organic content) as high as 14.9% and HI (hydrogen index) of up to 939. Other potential source rocks in this basin include the Forty Five Brook Formation of the older Mississippian-aged Anguille Group which contains significant type 2 and type 3 material and thermal maturation into the dry gas range.
Trapping Mechanism and Seal
The Deer Lake Basin is a strike-slip pull apart basin. Normal faulting is a dominant structural feature in this extensional setting. However, a flower structure (a compressive feature controlled by strike-slip movement) lies along the basin's central axis. Birchy Ridge is the surface expression of this flower structure in the vicinity of the EP93-103. The Western Adventure Structure lies just to the west of Birchy Ridge and its structural history is likely controlled by the same fault movement that create Birchy Ridge.
The Western Adventure Structure is a fault bounded anticlinal structural complex which some 22 km of seismic indicates is sub-divided into four major fault blocks and covers some 20 sq km.
Shales of the Carboniferous aged Rocky Brook Formation outcrop at surface and provide a potential top seal in both Western Adventure #1 and #2 wells.
Howley Basin Exploration
No petroleum exploration wells have been drilled in the Howley Sub-basin portion of EP93-103 and no seismic data exists. Gravity and aeromagnetic data indicate that the Howley Sub-basin is deeper than the Cormack Sub-basin so that a thicker section of Carboniferous and older sediments is likely present. This could indicate the presence of a deeper, richer 'petroleum kitchen'. A shallow, mineral core hole on the Howley Block encountered a show of degraded Carboniferous oil in a highly porous sandstone unit of the Carboniferous Howley formation.
EP03-104
Deer Lake Oil & Gas Inc. holds a 100% working interest in EP03-104 which covers some 25,818 hectares in the western Cormack Sub-basin of the Deer Lake Basin.
It is near the Town of Deer Lake onland Western Newfoundland and has excellent access and logistical features.
The present Trans Canada Highway cuts through the southern end of EP03-104 and the old Trans Canada Highway constitutes a centerline through it. A network of local famr and woods roads allows access to much of the Permit but access to particular potential well sites may involve winter drilling activities and/or the building of access roads.
General Geology
EP03-104 is overlain at surface by Carboniferous fluvial, alluvial and lacustrine sediments consisting of the Deer Lake Group (which include the Humber Falls, Rocky Brook and North Brook Formations) and the older Anguille Group. The same Ordovician carbonate platform that was targeted and successfully tested by the Port au Port #1 discovery well on the Port au Port Peninsula is present beneath the Carboniferous succession on EP03-104 and was penetrated by the Western Adventure #2 well just to the east on EP93-103. The Ordovician Carbonate Platform outcrops on the western part of EP03-104 with Carboniferous (?) oil present in fractures in outcrops along the Carboniferous/Ordovician unconformity.
Exploration History
Three exploration wells (all without seismic) were drilled in 1956 adjacent to EP03-104.
Claybar
#1 was drilled in 1956 to a depth of 457 m at a location 5 km east of the
northeast corner of
the Block and encountered a gas blowout at 335 m.
Claybar
#2 was drilled in 1956 to a depth of 853 m at a location 1 km south
of the southern boundary
of the Block and was dry.
Claybar
#3 was drilled in 1956 to a depth of 732 m at a location 3 km east of the
eastern boundary of the Block and had minor gas shows.
A number of shallow (less than 250 m in depth) mining core holes provide a significant geological database with regard to the Deer Lake Group sediments.
In 1997 and 1998, 37 kilometers of multifold reflection seismic data was shot in the Cormack Sub-basin, 15 kilometers of which lies on EP03-104. This dataset provided the first subsurface image of the sub-basin and gives insight into the structural and stratigraphic depositional history of the sediments.
The Deer Lake Basin is also covered by a grid of gravity and aeromagnetic data.
Potential Reservoirs
Two principal target reservoirs exist on EP03-104 . The upper targets consist of sandstones and conglomerates of the Carboniferous aged North Brook Formation. Additional target reservoirs exist at depth in Ordovician aged carbonates.
Source Rock
The main petroleum source rocks for the area are the shales of the Rocky Brook Formation. Analyses of samples by Hamblin et al indicate that this is an excellent Type I (oil prone) and Type II (gas prone) source rock with TOC's (total organic content) as high as 14.9% and HI (hydrogen index) of up to 939. The Forty Five Brook Formation of the Anguille Group may also be a potential source rock on EP03-104. Other potential source rocks in this basin include the Forty Five Brook Formation of the older Mississippian-aged Anguille Group which contains significant type 2 and type 3 material and thermal maturation into the dry gas range.
Trapping Mechanism and Seal
The Deer Lake Basin is a strike-slip pull apart basin. Normal faulting is a dominant structural feature in this extensional setting. However, a flower structure (a compressive feature controlled by strike-slip movement) lies along the basin's central axis.
On EP03-104, block faulting and horst basement blocks with drape structures and pinchouts provide targets in the Carboniferous clastic section. Faults and hydrothermal generated dolomitization in units of the Ordovician Carbonate Platform provide traps at depth.
The top seal that outcrops at surface is comprised of shales of the Carboniferous aged Rocky Brook Formation.
Bakers Brook - Cormack shallow oil play
A modified version of the Nichols Point shallow oil play is available on EP103-04. In the Cormack area the Cambro-Ordovician platform does not outcrop however stacked targets of Carboniferous and Cambro-Ordovician strata may still be available. Operating conditions for both seismic and drilling are favourable in this area. One of the main targets in the area would consist of the "Bakers Brook" braided stream system that was encountered in Western Adventure #1 on the east side of the Cormack sub-basin.
EP03-105
South Block
Deer Lake Oil & Gas Inc. holds a 100% working interest in EP03-105, which covers 35,221 hectares and lies astride the southern part of the Central Flower Structure of the Deer Lake Basin.
It includes part of the Town of Deer Lake and has excellent access and logistical features.
The present Trans Canada Highway bisects EP03-105 and a network of woods roads allows access to much of the Permit but access to particular potential well sites may involve winter drilling activities and/or the building of access roads.
General Geology
EP03-105 is overlain at surface by Carboniferous fluvial, alluvial and lacustrine sediments consisting of the Deer Lake Group (which include the Humber Falls, Rocky Brook and North Brook Formations) and the older Anguille Group. The same Ordovician carbonate platform that was targeted and successfully tested by the Port au Port #1 discovery well on the Port au Port Peninsula is present in outcrops in the western part of EP03-105 with Carboniferous oil present in the fractures and may exyend throughout the permit area.
Exploration History
Mills #1 was drilled on Block 7 in 1917 to953 feet and had
a number of gas blowouts and encountered oily brine.
Claybar
#2 was drilled in 1956 to a depth of 853 m at a location 1 km west of the
southwest corner of the Block and was dry.
The Deer Lake Basin is also covered by a grid of gravity and aeromagnetic data.
Potential Reservoirs
Two principal target reservoirs exist on EP03-105. The upper targets consist of sandstones and conglomerates of the Carboniferous aged North Brook Formation. Additional target reservoirs exist at depth in Ordovician aged carbonates over at least part of the permit area.
Source Rock
The main petroleum source rocks for the area are the shales of the Rocky Brook Formation. Analyses of samples by Hamblin et al indicate that this is an excellent Type I (oil prone) and Type II (gas prone) source rock with TOC's (total organic content) as high as 14.9% and HI (hydrogen index) of up to 939. The Forty Five Brook Formation of the Anguille Group outcrops on EP03-105 and is a potential source rock. Other potential source rocks in this basin include the Forty Five Brook Formation of the older Mississippian-aged Anguille Group which contains significant type 2 and type 3 material and thermal maturation into the dry gas range.
Trapping Mechanism and Seal
The Deer Lake Basin is a strike-slip pull apart basin. Normal faulting is a dominant structural feature in this extensional setting. However, a flower structure (a compressive feature controlled by strike-slip movement) lies along the basin's central axis. Glide Mountain is the surface expression of the southern part of the flower structure on EP03-105.
A potential top seal is comprised of shales of the Carboniferous aged Rocky Brook Formation over the NW part of EP03-105. Tight sand stone units of the North Brook and Saltwater Cove Formations are available over much of the remainder of the permit.
Nichols Point shallow oil play
One of the most exciting plays on EP103-05 is the potential for significant shallow oil productions (<5600 feet) from stacked targets consisting of an upper Carboniferous sands and lower Ordovician-aged targets in the in the karsted, fractured and dolomitized Cambro-Ordovician carbonate platform.