Operations
CYGAM OPERATIONS:
ITALIAN PERMITS:
Posta Nuova Permit
Vega has a 100% working interest in the Posta Nuova permit located onshore, in the Puglia region of southern Italy, along a trend where some major onshore gas fields (Candela-Palino, Monte Stillo, San Salvo-Cupello, etc.) were recently discovered. The block was provisionally awarded on March 6, 2002, and final ministerial approval, inclusive of licensing approval for a drilling location, is expected in the next few months. The parcel is 154.41 square kilometres in size (38,154 acres). As soon as the permit is awarded, Vega will be able to acquire and re-process existing seismic data in order to confirm the size of the structural target where a former operator drilled a well in 1993. That well, Cervaro 1, tested gas at a rate of 1.3 MMcf/d from a middle Pliocene sand at a depth of approximately 950 metres but was abandoned because of lack of gas transmission infrastructure at the time. Present commitment for the Posta Nuova permit requires the drilling of a well to a minimum total vertical depth of 1,000 metres to test the primary Middle Pliocene clastics objective; however, the well may be deepened to approximately 1,500 metres to test a secondary Miocene calcarenites objective. The Company plans to keep its 100% working interest and drill a second well on the Posta Nuova structure upon verification of data. Management is currently making preliminary enquiries on drilling rigs availability in southern Italy and is hopeful that the well may be commenced prior to year end.