According to Hart Energy, a major US consulting firm which focuses on the shale oil and gas industry, in 2012, the US to produced about 2 million of barrels of shale oil per day, mainly from the Bakkens and Eagle Ford basins in Texas. The USGS statistics show that 28 million tons of frac sand was used in 2012 thus on average a million barrels of new oil requires about 14 million tons of frac sand. It is estimated that to increase the US oil production to 6 million barrels of shale oil per day would require 80 to 100 million tons of frac sand by 2020.
In 2012, the US added 1 million barrels of new shale oil per day whereas Canada added 200,000 barrels of new oil per day mainly in Saskatchewan and Alberta (Government web sites). Provincial 2012 production of light and medium crude in Manitoba, Saskatchewan and Alberta were 50,000b/y, 462,000b/y, and 560,000b/y respectively; totalling 1,170,000 barrels of oil per day. As all the Western Canadian oil fields get redrilled and fracked; Canadian demand will increase. For example the 200,000 b/d increase in 2012 would have required about 2.8 million tonnes of frac sand.
The other main driver of the growth of the Canadian frac sand market will for drilling natural gas to feed the large Liquefied Natural Gas (LNG) plants planned in British Columbia. Compared to sand imported from Wisconsin, Claim Post's Seymourville Frac Sand Project is approximately 1000km closer to the entire Western Canadian market for both oil and natural gas. As such, the Company would benefit from a substantial freight advantage.
Charles Gryba, CEO of Claim Post Resources, stated: "With this Gossan transaction, we will have 100% ownership of the combined Seymourville sand leases totaling 730 hectares or 2.5 square miles. We are now evaluating the most cost effective way to complete an initial NI 43-101 report and a scoping study. We will start test marketing frac sand in parallel as drilling and ISO testwork is confirmed. Finally, we are pleased to have commenced our negotiations with the First Nations, a process required to advance any mining project in Canada today."
The Seymourville Silica Sand deposit was discovered in 1977 and was drilled by Manitoba government geologists in 1981 and again in 1989. The results indicated an estimated resource of 45 million tons of high silica sand (Manitoba Open File Report OF 96-4). The deposit is hosted within a 25m high hill composed mainly of Lake Winnipeg Formation which is the on-shore extension of the Historical Black Island silica deposits that were mined from 1928 to 2004. The 99% pure silica sand was evaluated to feasibility in the 1980's to make 500 tons per day of plate glass; including glass melt tests. (The same geological formation as Black Island hosts the 600,000 tpy Winn Bay Frac Sand operation located about 30km west of Flin Flon near Hanson Lake, Saskatchewan). The historical estimates are not current and do not meet the standards prescribed by NI 43-101. The Company has not completed the work necessary to have the historical estimate verified by a QP. The Company is not treating the estimate as a current NI 43-101 defined resource and the historical estimate should not be relied upon.
Charles Gryba P. Eng. acted as the Qualified Person for this press release.
Claim Post Resources Inc. is a Canadian based mineral exploration company and a reporting issuer in Ontario, Alberta and British Columbia. The Company now has a 100% ownership right in 9 quarry leases near Seymourville, Manitoba which the Company intends to develop as a source of fracking sand for the oil and gas industry. Claim Post also has mineral claims in the Timmins area for gold and base metal exploration. There are 48,288,831 common shares of the Company issued and outstanding.
Statements in this release that are forward-looking reflect the Company's current views and expectations with respect to its performance, business, and future events. Such statements are subject to various risks and assumptions, some, but not necessarily all, are disclosed elsewhere in the Company's periodic filings with Canadian securities regulators. Such statements and information contained herein represent management's best judgment as of the date hereof based on the information currently available; however actual results and events may vary significantly. The Company does not assume the obligation to update any forward-looking statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Claim Post Resources Inc.
President and Director
Claim Post Resources Inc.
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