Choice Resources Corp.

Choice Resources Corp.

January 04, 2005 07:30 ET

Choice Announces Acquisition of Exploration Property


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CHOICE RESOURCES CORP.

TSX VENTURE SYMBOL: CZE

JANUARY 4, 2005 - 07:30 ET

Choice Announces Acquisition of Exploration Property

CALGARY, ALBERTA--(CCNMatthews - Jan. 4, 2005) - Mr. Gordon Harris,
President and CEO of Choice Resources Corp. (TSX VENTURE:CZE) is pleased
to announce the acquisition of an interest in 36 sections of land in the
Snipe Lake area of Alberta. The Corporation has an executed offer letter
and closing is scheduled for the last part of January. The purchase
price is $1,230,000 and is subject to due diligence.

The Acquisition was for all rights in 23,040 acres gross (5,935.6 acres
Net) with 1,088 net acres developed. Three exploration wells have been
drilled to date. One well tested 5.8 mmscf/d on DST from one zone and
3.7 mmscf/d from another zone. Plans are in place to tie this well in
during the first quarter. Expected production levels are in the 1.0 to
2.0 mmscf/d on a gross basis. The working interest in this well is 30%
before payout and 18% after payout.

Two wells will be tested during the first quarter at a working interest
of 70% before payout and 38.5% after payout. An exploration well will be
drilled in the first quarter at a working interest of 23%. Interests in
the entire land block vary between 13.5% and 70%.

This area is an exploration focus area and provides Choice with at least
4 more exploration plays in its inventory. The additional exploration
acreage fits into the Company strategy of adding exploration acreage and
play types at a modest cost. In addition there will be up front cash
flow with the tie in of the 3-28 well. The well costs and depths are
modest as most drilling is 1,500 to 2,000 meters. There are multiple
zones of potential including the Gething, Falher, Dunvegan, Montney,
Doig and Viking zones.

Choice is also in discussions with an industry partner about
participating for 30% of Choice's acquired interest in these lands.


Gordon D. Harris

President and CEO


CAUTION REGARDING FORWARD LOOKING STATEMENTS

Certain statements contained herein constitute forward-looking
statements. The use of any of the words "anticipate", "continue",
"estimate", "expect", "may", "will", "project", "should", "believe", and
similar expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking statements.
The Corporation believes the expectations reflected in those
forward-looking statements are reasonable but no assurance can be given
that these expectations will prove to be correct and such
forward-looking statements included in this report should not be unduly
relied upon. These statements speak only as of the date of this
presentation. The Corporation does not undertake any obligation to
publicly update or revise any forward-looking statements.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Choice Resources Corp.
    Gordon Harris
    President and Chief Executive Officer
    (403) 216-5821
    (403) 216-5828 (FAX)
    Email: info@choiceresources.ca
    Website: www.choiceresources.ca
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the contents of this news
    release.