CALGARY, ALBERTA–(EMWNews – July 15, 2008) – Canoro Resources Ltd. (TSX VENTURE:CNS) began drilling the Amguri 12 appraisal well with a new triple drilling rig on the Amguri Development Block in Northeast India. The Company has also finished operations on the Borkathani exploration well with the shallow drilling rig on the AA-ON/7 Exploration Block.
The Company did not find any commercial reserves at Borkathani after completion of testing operations and will abandon this exploration well. Canoro is planning to drill a Dergaon appraisal well in the fall of 2008 to further determine the commerciality of the Dergaon gas discovery. Land for this well location has been acquired with lease building activities to begin in the fall. This shallow well is located approximately 1.4 km from the original discovery well.
Canoro plans to move the large triple drilling rig early in Q1 2009 to drill the large Naga Hills sub-thrust exploration prospect in AA-ON/7, subject to necessary approvals.
Canoro has commenced drilling operations for the A-12 appraisal well. The well is being drilled from the A-12 surface pad, which can accommodate additional proposed development locations. The A-12 well is the first well of several locations identified to be evaluated as part of the 2008-2009 drilling campaign. This well will test a structurally high portion of the Barail formation and will also be drilled to basement to test for possible hydrocarbons in the Basal Sandstone formation.
The shallow drilling rig will return to Amguri field to install artificial lift at Amguri 5 to return this oil well back to production, followed by a completion of the oil zone in Amguri 13B. Canoro plans to have these additional oil wells producing prior to year-end. Current net production from the Amguri field continues to be in the 1,000 to 1,100 boe/d range.
On the AA-ONN-2003/2 block, the acquisition of the 100 km2 3-D seismic program is complete and the data is currently being processed. So far, four drilling locations have been identified and selected, with the remaining commitment wells to be identified on review of the new 3D seismic data. Commencement of drilling operations is anticipated in the first quarter of 2009, pending regulatory approval.
Canoro is a Canadian-based international oil and gas company operating in the Assam/Arakan basin of northeast India. Canoro is the operator of Amguri field with a 60% working interest. Canoro is the operator with a 65% working interest in the AA-ON/7 exploration block. Canoro also has a 15% non-operated working interest in the AA-ONN 2003/2 exploration block.
Common shares of Canoro trade on the TSX Venture Exchange under the symbol ‘CNS’.
This news release contains certain forward-looking statements, including management’s assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond Canoro’s control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Canoro’s actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Canoro will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Canoro or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Canoro does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this News Release.
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