TVI Pacific Inc. Provides Operational Update on Alaskan Well
TVI Pacific Inc. (TSX: TVI) (OTCQX: TVIPF) ("TVI" or "the Company") is pleased to provide an update on the Alaskan North Slope winter 2010/2011 exploration program at North Tarn. Project operator Brooks Range Petroleum Corporation ("BRPC") has advised TVI that operations are winding down on the North Slope as the drilling season comes to a close due to spring break-up.
- North Tarn #1 successfully penetrated the Kuparak oil sandstones
- 20-25 feet of sand thickness is estimated based on cutting samples
- Drilling operations complete for the 2010/11 drilling season
The North Tarn #1 exploration well began drilling on March 13, 2011 to test Brookian and Kuparuk reservoir targets. Minor gas kicks and oil shows occurred in the shallower Brookian target sandstones but were much lower-permeability than expected. Drilling continued to the deeper Kuparuk sandstone target to 6,223 feet measured depth ("MD") having penetrated the Kuparuk sandstones. On penetration of the Kuparuk zone, there were strong mud gas shows with high oil-cut mud and gas flow to surface tanks. A period of well control operations from March 22 until April 2 was required before mud losses and hydrocarbon flows to surface tanks stopped. The open hole was cement plugged on April 8.
The Kuparuk sandstones were not logged because of the well control challenges. Based on sandstone cuttings samples and gas readings, the Kuparuk is estimated to be 20-25 feet thick in North Tarn #1. This is comparable to the thicknesses of the Kuparuk C1 sandstone unit in the nearest Kuparuk River Unit well located 2.4 miles to the east and the #2L-03 exploration well drilled 1.1 miles to the south in 2002. Net pay in the North Tarn #1 well is unknown because of the lack of well logs and test data.
Working interest owners commenced drilling a Tarn #1 replacement well on Monday, April 11 using the existing well surface hole. The well reached objective measured depth of 6,086 feet at the base of the Kalubik formation (the zone above the Kuparuk C sand) on Thursday, April 14 and intermediate 7" casing was set. The rig is presently being demobilized from site. Because of the 2010/2011 winter drilling season closure, the North Tarn well will drill through the Kuparuk formation and be fully tested during the 2011/2012 winter drilling season.
TVI Pacific holds a 20% interest in the well. Cliff James, President and CEO of TVI, commented "We are extremely pleased with the fact that we flowed oil at North Tarn and have identified a potential pay zone in the Kuparuk. The JV partners will further assess the results in the coming months for preparation on further activity in the 2011/12 drilling season at North Tarn".
About TVI Pacific Inc. (TSX: TVI) (OTCQX: TVIPF)
TVI Pacific Inc. is a publicly-traded resource company focused on the production, development, exploration and acquisition of resource projects in the Philippines. TVI produces copper concentrate from its Canatuan mine, is developing a gold property for anticipated production in the second half of 2012 and has begun an aggressive exploration program at its high-impact Tamarok property. TVI also has interests in oil and gas assets in Alaska, Niger and offshore Philippines.
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IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
Certain information set out in this news release constitutes forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe", "schedule" and similar expressions.
Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information received from or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from or disseminated by third parties is reliable, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties (known and unknown) that could cause actual outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include, but are not limited to, such things general economic conditions in Canada, the United States, Niger, Alaska, the Philippines and elsewhere; volatility of prices for precious metals, base metals, oil and gas; commodity supply and demand; fluctuations in currency and interest rates; inherent risks associated with the exploration and development of mining properties; inherent risks associated with the exploration of oil and gas properties (including mechanical problems); ultimate recoverability of reserves, production, timing, results and costs of exploration and development activities; political or civil unrest; availability of equipment and personnel; availability of financial resources or third-party financing; new laws (domestic or foreign); changes in administrative practices; changes in exploration plans or budgets; and availability of equipment and personnel. Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this news release and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes.
Forward-looking statements respecting anticipated operations at North Tarn during the 2011/12 winter exploration season in Alaska (including the testing of the North Tarn well) are based upon information obtained during the drilling of the North Tarn #1 well, initial tests from the North Tarn #1 well and the exploration plan developed by the Alaska joint venture participants (which are subject to change). Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this news release and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes
The forward-looking statements of the Company contained in this news release are expressly qualified, in their entirety, by this cautionary statement. Various risks to which the Company and its affiliates are exposed in the conduct of their business (including mining activities) are described in detail in the Company's Annual Information Form for the year ended December 31, 2010, which was filed on SEDAR on March 30, 2011, and is available under the Company's profile at www.SEDAR.com. Subject to applicable securities laws, the Company does not undertake any obligation to publicly revise the forward-looking statements included in this news release to reflect subsequent events or circumstances, except as required by law.
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Contacts:
TVI Pacific Inc.
Rhonda Bennetto
Exec. Dir. Investor Communications
403.265.4356
rhonda.bennetto@tvipacific.com
TVI Pacific Inc.
Ian McColl
Investor Relations Analyst
403.265.4356
ian.mccoll@tvipacific.com
www.tvipacific.com
