Saturn Minerals Inc. and Vector Exploration Corp. Announce a 50/50 Joint Venture on Saskatchewan Oil & Gas Projects
May 27, 2014 (Source: Marketwired) — Saturn Minerals Inc. (TSX VENTURE:SMI)(FRANKFURT:SMK) (“Saturn” or the “Company”) is pleased to announce that it and Vector Exploration Corp. (“Vector”) have mutually agreed to amend an existing Farm-In Agreement for oil & gas permits EP-71 and EP-72 (the “Little Swan” and “Bannock Creek” properties) located in the Williston Basin in eastern Saskatchewan. Under terms of a new Joint-Venture Agreement, both Saturn and Vector will each retain a 50% working interest in both projects.
Additionally, both Saturn and Vector have agreed on an Area of Mutual Interest surrounding the Little Swan and Bannock Creek projects within which both companies will retain a right of first refusal to participate at their Working Interest on any operations, including Land Purchase, geological and geophysical programs, drilling and completions.
The Little Swan and Bannock Creek projects are two of the largest oil & gas permits in the province of Saskatchewan, consisting of over 376,800 acres (over 16 Townships). Both permits are located in the Williston Sedimentary Basin and grant Saturn and Vector the exclusive right to any oil & gas discovered in any formation from surface to basement.
Reservoirs on permit lands include the entire geological section form Devonian to Cambrian which create “multi-stacked targets” which include the Duperow, Souris River, Winnipegosis, Interlake, Red River (Yeoman Formation), Winnipeg Group (Black Island Formation) and Deadwood. All of these reservoirs are known to host and produce economical deposits of oil & gas within this region of the sedimentary basin.
To date, Saturn and Vector have completed three seismic programs on the Little Swan and Bannock Creek properties which have resulted in the discovery of several basement structures affecting the entire stratigraphic column and are extremely encouraging for the formation of oil & gas traps. The seismic data acquired, combined with previous geophysical and well-bore data acquired by Saturn since 2011, have formed the basis of Saturn and Vector’s exploration model. This model has identified significant similarities in structure and reservoir potential between the Little Swan and Bannock Creek properties and the Red River “Tyvan” oil pool to the south. Template seismic lines over the “Tyvan” oil pool depict stratigraphic and structural traps in the Yeoman and Deadwood formations over basement highs, a scenario highly analogous to the seismic data acquired on the Little Swan and Bannock Creek where the same reservoirs are present. The “Tyvan” oil pool has to date produced over 15 million barrels (31 API) with average well production at 150 BOPD.
The companies have also recently completed a fourth seismic program on the Little Swan and Bannock Creek properties, results of which are presently being interpreted and will be reported when completed.
Saturn and Vector are currently planning the next stage of exploration, which will include the drilling of vertical exploration wells into multi-stack targets.
The Joint-Venture Agreement is subject to the approval of the TSX Venture Exchange the board of directors of Saturn and Vector.
Craig Boland, P. Geo. is the Companies’ Qualified Person under NI 51-101 standards who has reviewed and approved the technical content of this release.
About Saturn Minerals Inc.
Saturn Minerals Inc. (TSX VENTURE:SMI)(FRANKFURT:SMK) is a junior Canadian energy company advancing a portfolio of oil and coal properties in Saskatchewan and Manitoba. The Company has interests in over 370,000 acres of oil & gas rights in Saskatchewan and is advancing a number of oil exploration projects. Saturn has also made three shallow bituminous coal discoveries since 2009 with coal seams ranging in continuous vertical thickness from 9 to 89 meters. Saturn has a strategic ownership in Inowending Exploration & Development Corp., a First Nations owned exploration and development company co-founded by Saturn with a consortium of Saskatchewan First Nations active in Canada’s prairie provinces.
On Behalf of the Board of Directors
SATURN MINERALS INC.
Stan Szary, Chief Executive Officer
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