Canoro Resources Ltd.

Canoro Resources Ltd.

October 11, 2005 08:00 ET

Canoro Awarded New Exploration Block in NE India

CALGARY, ALBERTA--(CCNMatthews - Oct. 11, 2005) - Canoro Resources Ltd. (TSX VENTURE:CNS), is pleased to be formally notified, by the Government of India, of the award of the AA-ONN-2003/2 onshore exploration block. This block in Arunachal Pradesh, northeast India, was awarded to Canoro (30%) and its consortium partners (National Thermal Power Corporation (NTPC) - 40% and Geopetrol International Inc. (Geopetrol) - 30% and Operator). This was the only block Canoro bid on under India's fifth round of New Exploration Licensing Policy (NELP V).

The 295 km2 block is 2.5 km from the producing Kharsang oil field, which Geopetrol jointly operates, and approximately 150 km northeast of Canoro's exploration and development blocks in Assam. No wells have been drilled on the block and there is limited seismic coverage over the area.

The block has an initial seven-year exploratory period, broken into three phases, followed by a 20-year production term for any commercial discoveries. There is a possibility for a five year extension. The first exploratory phase includes a minimum work commitment of 200 km of 2-D seismic acquisition, 100 km2 of 3-D seismic acquisition and seven exploration wells of varying depths between 2,000 and 4,000 meters over the next three years. Phases two and three, each two years in duration, have additional seismic and drilling commitments.

Geopetrol, (the Operator), is one of the very first participants in the developed field offerings in India and has been jointly operating the Kharsang field since 1995. Geopetrol is a subsidiary of the French Geofinance Group who has a presence in over 80 countries worldwide (Geoservices Inc. is its flagship company and a leader in oilfield technology). It is understood that this is the only consortium in India to have two foreign oil companies working in the same block.

NTPC, is India's largest power utilities company and part of the 9 jewels ('Nav Ratna') Government of India owned companies. As part of its diversification plans, NTPC has entered into the upstream oil and gas business with this block. NTPC is known widely for its strong corporate governance and financial strength.

The award of this block is the latest step in Canoro's strategy to grow its presence in India.

Canoro is a Canadian-based international oil and gas company operating in the prolific Assam/Arakan basin of northeast India. The Company is testing and rehabilitating production from the suspended Amguri oil and gas field where it is the operator and has a 60% working interest. Canoro is the operator with a 65% working interest of the 1,450 km2 AA-ON/7 exploration block, and has a 30% working interest in the 295 km2 AA-ONN-2003/02 exploration block. Common shares of Canoro trade on the TSX Venture Exchange under the symbol 'CNS'.

Certain statements contained in this news release may be considered as "forward looking". Such statements are generally identifiable by the terminology used, such as "intend", "plan", "expect", "appears", "estimate", "budget", "outlook" or other similar words. Such "forward looking" statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this News Release.

Contact Information

  • Canoro Resources Ltd.
    Rob McInnis
    Manager, Investor Relations
    (403) 543-5748
    (403) 543-5740 (FAX)
    Canoro Resources Ltd.
    2810, 715 - 5th Ave SW
    Calgary, Alberta T2P 2X6