AXcess News: The Hunt for Oil
NEW YORK, NY, Jul 15, 2008 (MARKET WIRE via COMTEX News Network) --
Vangold Resources Ltd. (TSX-V: VAN) (PINKSHEETS: VNGRF) announced July 8, 2008 that it was launching an airborne survey covering the Kivu Graben basin in Rwanda. While that doesn't seem like it might have anything to do with the political fight in Washington over energy, guess again.
President Bush lifted the ban on offshore drilling that his father's administration had put into place. Meanwhile, Democrats were in an uproar saying there were millions of acres already under lease that had yet to be explored. But despite oil's precarious Middle East supplies and the fight amongst US lawmakers, some exploration companies are already looking elsewhere in finding new reserves to tap for the growing global energy market.
Due to the geopolitical turmoil in the Middle East, many oil and gas exploration companies are moving to explore in new regions of the world with Africa a strong likelihood of further foreign oil and gas development.
The Kivu Graben where Vangold is exploring for energy deposits is located south of the Albertine Graben in Uganda on Lake Albert where Tullow and Heritage Oil have made a major oil and gas discovery (500,000+ barrels).
Recent studies have indicated 55 billion cubic meters of methane gas lay beneath the shallow lake bed of Lake Kivu and a pilot power plant with a capacity of 4.5 Mw has been commissioned. Following Vangold's survey, the potential field interpretation will include available geological, geochemical and remote sensing data to rank priority areas /anomalies /structures for further study with seismic that will eventually lead to the drilling of the most prospective sites.
Vangold, like many oil and gas exploration companies, is searching for new resources of energy to fill the growing demand worldwide. While crude oil prices hold in the $140 per barrel range and natural gas prices remain over $12, finding new supplies of energy will lie mostly in the hands of junior companies like Vangold while majors continue to tie into deals on existing fields they're already working.
Should the Bush administration be successful in winning its fight to expand offshore exploration and drilling, it will be years before it will fill the growing demand in the US, let alone global demand for more energy. To fill that demand, more effort will be concentrated in potential markets like Africa where geopolitical tensions are lower.
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SOURCE: AXcess News
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