VANGOLD PROVIDES ARMENIA OIL PROJECT UPDATE
FOXBusiness
July 17 2008
Vancouver, British Columbia CANADA, Jul 17, 2008 (Filing Services
Canada via COMTEX) —- Vangold Resources Ltd. (VAN – TSX Venture,
VNGRF – OTCBB_Pink_Sheets), announces an update on its Armenia oil
project. In April of 2007, Vangold partnered with Blackstairs Energy
and signed an exploration and production sharing agreement with the
government of Armenia. Signaling their commitment to operations in
Armenia the Blackstairs Energy-Vangold Joint-Venture opened an office
in Yervan, the capital of Armenia. While the sedimentary basins of
Armenia to this day are relatively under-explored Vangold considers its
concessions, which cover the south half of the country, approximately
13,755 sq km, to hold a very high potential for a major find. Armenia
is ideally located adjacent to oil rich countries Azerbijan, Georgia
and Iran. The Joint-Venture’s work program over the initial five
years will include geological, gravity and geochemical studies,
remote sensing (satellite imagery) and 170 km of 2D seismic. The
update from Tim Papworth, General Manager Armenia and Gerry Sheehan,
the Managing Director of Blackstairs Energy plc summarized as follows:
License & Administration
The Fourth Technical Advisory Committee was held on June 5th with
representatives from the Joint-Venture and the Ministry of Energy
and Ministry of Environment. The status of the technical projects
was reviewed in detail and the Ministry noted the good progress on
various geological and geophysical projects.
Satellite Imagery: the study (at 1:100,000 scale) will be extended
some distance across the southern Block 5 border, allowing an enhanced
interpretation of the greater Block 5 area.
Gravity Survey: The Gyumri Institute gravity crew re-commenced the
joint-ventures gravity survey during May. To date the crew has acquired
2,500 points from the total planned survey of 5000 stations. The
survey is concentrated in Blocks 4 and 5.
Field Mapping: the Geological Institute have been contracted to
undertake geological profiling across Block 5 – this will entail
detailed field mapping and ground verification and sample collection
for petrographic analyses. A project to analyze gas samples from the
Norashen area and oil samples from Yeranos borehole has been also
been discussed with the Institute.
Update on Review of Prospectivity
Analyses of the archive technical database and generation of a new
geological model for the License Area is progressing well. Several
sub-basins are emerging as having encouraging prospectivity and these
areas are being high-graded for future seismic acquisition and more
detailed geological study and thermal modeling.
* Tchambarak Area (NE Block 4) – main features are tightly compressed
folding and faulting in NW-SE direction, with several pronounced
anticlinal features. Bituminous mudstones occur in the Middle
Eocene, and bitumen is developed along fractures in the Eocene and
Cretaceous. New gravity surveys and perhaps some regional seismic
will be considered to define the structures and stratigraphy more
accurately.
* Dzknaget Area (N.W. Block 4) – main features is the Dzknaget
anticline almost certainly extending offshore, towards the southeast. A
minor gas show was seen in the Dzknaget-4 borehole. Bitumen occurs
in Senonian (Upper Cretaceous) limestone exposures in various places.
* Norashen Area (west Block 4) – based upon several boreholes a
brachy-anticline of 60 meters relief at Top Pliocene level exists
close to the Norashen-1 structural borehole. A second positive
structure is seen between Norashen wells 1 and 2. The Sarmatian
regional impermeable seal is 1200 – 1500 meters deeper here than in the
Gavar-Noraduz area to the east, inferring the presence of a significant
Pliocene-Quaternary depression in the area. Significant gas shows have
been seen in the Chkalova-2, Norashen-3 and other wells, as well as
gas seeps from the bottom of Lake Sevan. Gravity surveying and seismic
is being considered in order to identify possible structural leads.
* South Sevan Area (south Block 4) – main features are two significant
gravity anomalies seen in the Yeranos and Gegharkunik areas. Several
other positive features also occur. An oil seep is still seen in
the Yeranos well, on the eastern edge of one gravity anomaly. Modern
seismic surveys would be required to confirm the probable geological
model. The Sarmatian regional seal development is key for oil and
gas prospects.
* South Vayotsdzor Area (south Block 5) – There are well defined
anticlines in the area, for example the Gnishik – Gtatsar anticline
and the Spitaksar anticline along the Nakhichevan border. There
are several boreholes with gas shows – Gyulistan-3, Ogbin-1 etc.,
while a Permian bituminous deposit near Khachik was studied in the
past for possible commercial exploitation The Martiros structure is
underexplored – one well did not reach target. The Akhta Dome north
east of Martiros is also of interest. Devonian, Permian and Triassic
rocks all contain potential source rock. A maturation model needs to
be developed to better understand local generation and the effects
on reservoir quality.
The remaining technical program for this year will comprise the ongoing
evaluation of the technical database and its collation to a modern GIS
format, the completion of the Gravity Survey, some in-field geological
mapping and rock sampling (and lab petrographics), a small extension
of the InfoTerra study to capture additional structural geological
detail in western Block 5/6 and an analysis of hydrocarbon samples
from Norashen and Yeranos boreholes.
Commenting on the Armenia oil project, Dal Brynelsen, President and
CEO of Vangold, stated: "We are very pleased with the results and
professionalism being shown and that is reflected in the tremendous
third-party interest in our Armenia concession."