Canoro Resources Ltd.

Canoro Resources Ltd.

October 03, 2007 07:45 ET

Canoro Discovers New Commercial Reservoirs at Amguri 11

CALGARY, ALBERTA--(Marketwire - Oct. 3, 2007) - Canoro Resources Ltd. (TSX VENTURE:CNS) has completed three of five tests in the Amguri 11 well. To date, two new reservoirs have been confirmed with another zone and the main Barail reservoir still to be evaluated.

First New Commercial Reservoir

The newly discovered mid-Barail reservoir was successfully tested through an eight meter perforation. This new reservoir flowed at a clean-up test rate of approximately 280 bbl/d of condensate and 2.1 mmcf/d of natural gas through a 16/64 inch choke with tubing head pressure of 2,500 psi. This new reservoir, at 200 meters below the Main Barail Sand, has an 11 meter pay zone that is two meters thicker than originally reported. This equates to approximately 630 boe/d.

Second New Commercial Reservoir

A seven meter interval, approximately 10 meters below the base of the Barail Main Sand, was perforated and flowed at approximately 180 bbl/d of condensate and 2.5 mmcf/d of natural gas through a 16/64 inch choke with tubing head pressure of 2,200 psi. This equates to approximately 600 boe/d.

Remaining Testing

An additional seven meter interval, approximately 20 meters below the Barail Main Sand, is planned for perforation and testing shortly.

Lastly, we plan to test the previously reported 36 meter known Main Barail sand, with results expected shortly thereafter.

Basal Sandstone and Basement Results

The Basal Sandstone, at approximately 3,900 meters, was tested and flowed non-commercial quantities of natural gas and water.

We are planning the Amguri 12 appraisal location to test what is anticipated to be a structurally higher position in all reservoirs approximately 1,200 meter to the southwest of Amguri 11.

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.

Contact Information

  • Canoro Resources Ltd.
    Rob McInnis
    Vice President, Business Development and Corporate Affairs
    (403) 543-5748
    (403) 543-5740 (FAX)
    Canoro Resources Ltd.
    2810, 715 - 5th Ave SW
    Calgary, Alberta T2P 2X6