NOVA SCOTIA, Canada, July 10, 2001 (PRIMEZONE) -- Osprey Energy (CDNX:OEL) is pleased to announce that an extensive onshore seismic program to locate potential oil and gas deposits north of Truro, Nova Scotia has commenced. Osprey and its joint venture partner will be conducting a three-to-four week program over an 80-mile stretch from Debert to Parrsboro. This area, which has up to 8,000 meters of sedimentary rocks that were deposited about 200 million years ago, is part of the Maritime Basin.
The primary target of the 70 kilometers of seismic lines is the Pennsylvanian Parrsboro formation. The Lower Parrsboro formation is about 850 meters thick and consists of sandstone and shale assemblages, where the sandstone members are reported to be eight to fifty meters thick within the interval for an expected gross 500 meters of sandstone within the formation. The Upper Parrsboro is about 1,800 meters thick and is generally similar to the Lower Parrsboro, the exception being that the sandstones are thinner and finer grained. The shale units are organically rich, with some of the shale units emitting a strong petroliferous odor when broken.
The Seismic program, which is gathering 6,000 percent fold Vibroseismic data, has been contracted to Kinetex Inc. They will use large vibrator trucks instead of dynamite to generate the sound waves. These trucks can create 50,000 pounds of force, which sends sound waves down through the bedrock at a rate of five to six kilometers per second. The 35-person crew is expected to gather about three kilometers of data per day.
The seismic shoot will be analyzed with advanced computer technology to create a subsurface geological profile, which will be integrated with surface geological data gathered over many years by the Geological Survey of Canada and the Nova Scotia Department of Natural Resources. The integrated profile should define structures capable of producing economical quantities of oil and gas. There are indications that the region has potential reserves of up to 75 million barrels of oil and 345 billion cubic feet of gas.
Based on data from a seismic shoot in the early 1980's, both Osprey Energy and the project operator are confident that the current seismic program will produce quality data to more precisely define targets for the drilling of an exploratory well in the structures identified in the previous seismic shoot.
This venture is but the latest in a growing number of developments in the Maritime Basin which have made this region one of the most active oil and gas exploration areas in Canada. The activity, both on and offshore, is generating increasing interest from all over North America.
Osprey Energy also wishes to announce it has agreed to issue 20,000 shares valued at $1.80 per share to settle a legal dispute with a former officer of the Company.
The Company also wishes to announce that it is issuing 390,000 one-year employee/director incentive stock options at a price of $1.00 in accordance with CDNX policy.
ON BEHALF OF THE BOARD OF DIRECTORS OF
OSPREY ENERGY LTD.
"R. Gary Malone"
President
"This release was prepared by management who take full responsibility for its contents. The CDNX neither approves nor disapproves of this news release".
WARNING: The Company relies on litigation protection for "forward-looking" statements.