Buffalo Resources Corp.
TSX VENTURE : BFR

Buffalo Resources Corp.

November 08, 2007 14:18 ET

Buffalo Updates Winter Program Production at 4,000 boe/d

CALGARY, ALBERTA--(Marketwire - Nov. 8, 2007) - Buffalo Resources Corp. ("Buffalo") (TSX VENTURE:BFR) is pleased to announce that it is currently producing approximately 4,000 boe/d and expects to exit 2007 at a production rate between 4,200 and 4,500 boe/d, equally split between crude oil and natural gas.

The merger and restructuring of Buffalo is essentially complete. As required by Canadian GAAP, Choice Resources Corp. ("Choice"), was deemed the acquirer of The Buffalo Oil Corporation ("Former Buffalo") in the August 2, 2007 amalgamation. Consequently, the recently released Q2 2007 results of operations which reported average production for the quarter of 2,641 boe/d included three months of production from the Choice assets and only 30 days production from Former Buffalo assets. On a pro forma basis, the combined companies produced an average of 4,031 boe/d for the month of August 2007. Net revenues and cash flows were handled in the same way and should, similarly, be significantly higher in future periods. As well, prior year numbers, used as comparatives, were those of Choice, not Former Buffalo.

Buffalo has an extremely active 2007/2008 winter exploration and development program planned:

Peace River Arch

- At Expanse, a recently drilled well (100% WI) produced from two zones at rates totalling in excess of 1 MMcf/d of gas with associated liquids on a short-term test. Plans are underway to have this well tied-in and on stream in early 2008. The Company owns nine sections of land in the area (7.5 net) and anticipates following up with a 3-D seismic shoot in 2008;

- At Valhalla, a well (10% WI) will be drilled by another operator to a depth of 2,400 metres in November;

- Two wells (100% WI) will be drilled at Cecil by year end to test the Kiskatinaw, Wabamun and Granite Wash zones. In the first half of 2008, Buffalo plans to drill at least two Charlie Lake development oil wells at Cecil; and

- In the Clayhurst area, a 30 square mile 3D seismic shoot has received all approvals and should be completed by early December. Buffalo owns six sections of land at Clayhurst.

Frog Lake

- The Company expects to receive IOGC approval of well licences in time to drill 11 (8.5 net) wells at Frog Lake before year end.

Pincher Creek

- The first Mississippian well of a four well program has been licensed for drilling a horizontal well to a depth of 3,900 metres. Buffalo is seeking program funding and partner approval prior to spudding the well.

- In 2008, Buffalo plans to re-complete a suspended well for sweet gas and light oil in the shallower Cretaceous zone that has recently been successfully exploited by two other operators in the immediate area.

Certain information set forth in this press release contains forward looking statements. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, reliance should not be placed on forward-looking statements. Buffalo's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and accordingly, no assurance 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 Buffalo will derive therefrom. Buffalo disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Barrels of oil equivalent (Boe's) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf of gas = 1 Bbl of oil is based upon 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 has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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