VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 27, 2014) - Saturn Minerals Inc. (TSX VENTURE:SMI)(SMK.F) ("Saturn" or the "Company") is pleased to announce that it and Vector Exploration Corp. ("Vector") have mutually agreed to amend an existing Farm-In Agreement for oil & gas permits EP-71 and EP-72 (the "Little Swan" and "Bannock Creek" properties) located in the Williston Basin in eastern Saskatchewan. Under terms of a new Joint-Venture Agreement, both Saturn and Vector will each retain a 50% working interest in both projects.
Additionally, both Saturn and Vector have agreed on an Area of Mutual Interest surrounding the Little Swan and Bannock Creek projects within which both companies will retain a right of first refusal to participate at their Working Interest on any operations, including Land Purchase, geological and geophysical programs, drilling and completions.
The Little Swan and Bannock Creek projects are two of the largest oil & gas permits in the province of Saskatchewan, consisting of over 376,800 acres (over 16 Townships). Both permits are located in the Williston Sedimentary Basin and grant Saturn and Vector the exclusive right to any oil & gas discovered in any formation from surface to basement.
Reservoirs on permit lands include the entire geological section form Devonian to Cambrian which create "multi-stacked targets" which include the Duperow, Souris River, Winnipegosis, Interlake, Red River (Yeoman Formation), Winnipeg Group (Black Island Formation) and Deadwood. All of these reservoirs are known to host and produce economical deposits of oil & gas within this region of the sedimentary basin.
To date, Saturn and Vector have completed three seismic programs on the Little Swan and Bannock Creek properties which have resulted in the discovery of several basement structures affecting the entire stratigraphic column and are extremely encouraging for the formation of oil & gas traps. The seismic data acquired, combined with previous geophysical and well-bore data acquired by Saturn since 2011, have formed the basis of Saturn and Vector's exploration model. This model has identified significant similarities in structure and reservoir potential between the Little Swan and Bannock Creek properties and the Red River "Tyvan" oil pool to the south. Template seismic lines over the "Tyvan" oil pool depict stratigraphic and structural traps in the Yeoman and Deadwood formations over basement highs, a scenario highly analogous to the seismic data acquired on the Little Swan and Bannock Creek where the same reservoirs are present. The "Tyvan" oil pool has to date produced over 15 million barrels (31 API) with average well production at 150 BOPD.