Rich Minerals Corporation announces successful bids in Brazil land auctions
Published December 7th, 2007
Rich Minerals Corporation (”Rich” or the “Company”) whose common shares trade on the TSX Venture Exchange (the “Exchange”) under the symbol “RMC” is pleased to announce that the Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis, Brazilian Federal Oil and Gas Agency (”ANP”) has awarded Rich Minerals Corporation two onshore blocks in the Potiguar Basin. In addition Rich, in a Joint Venture with Tarmar Energia e Participacoes Ltda. (”Tarmar”), a Brazilian oil and gas exploration company, were awarded two blocks in the Rio de Peixe Basin. Rich has a 20% participation in these two blocks.
The four blocks total approximately 71 square kilometres (17,444 acres) of land under concession for oil and gas exploration.
Rich’s technical team, consisting of Dr. Augusto Mendonca and Dr. Roberto Moraes were responsible for the evaluation and strategy definition of the blocks in the Potiguar Basin. The Company’s technical team selected the blocks to bid on based on geophysical data re-processing and interpretation of gravity and magnetic data. The evaluation was supported by geological information and well data.
The Potiguar Basin is the largest on-shore production area in Brazil, and has excellent infrastructure. The blocks awarded to Rich are located beside a Petrobras producing field, Belem. The Belem field is approximately 150 square kilometres and produces 2200 boe/day. The oil occurs in the Acu Formation at a depth between 200 and 350 meters. The Company focused on two structures revealed by magnetic and gravimetric data evaluation, located in the SE and SW portions of the Belem field. The technical team believes the structures could be extensions of the existing fields. The Company was awarded the blocks located over the identified SW structure, and Starfish Oil and Gas S.A., a medium size Brazilian oil company, won the blocks located in the SE structure. Additional seismic lines will be necessary in order to define well prospects in these blocks.
Although the Rio de Peixe Basin is a new frontier, the correlation of successful plays in the Potiguar Basin, indicate that the Rio de Peixe Basin has prospective areas.
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