Churchill Energy Inc.
TSX VENTURE : CEI

Churchill Energy Inc.

September 26, 2007 19:48 ET

Churchill Provides Update on Smoky Well

CALGARY, ALBERTA--(Marketwire - Sept. 26, 2007) - Further to Churchill's press release dated March 14, 2007, Churchill Energy Inc. (TSX VENTURE:CEI) ("Churchill" or the "Company") has completed production testing on the 1-16-59-2W6M (0.85 net) well in Smoky. The Company was forced to suspend operations on the 1-16 well as road bans were put into effect in mid-March due to unseasonably warm weather. Churchill re-commenced operations in August and completed one additional Cretaceous zone, the Cardium. The well flowed natural gas from the commingled Cretaceous gas zones at a sustained rate of approximately 2 mmcf/d and approximately 12 bp/d of condensate on a 72 hour production test. Production logging indicates that all seven zones are contributing gas flow. The deepest Cretaceous zone is also producing water which may be inhibiting the gas flow so the Company will be setting a bridge plug above that zone to shut off the water. Churchill expects the well to be on production by mid to late October. Initial production rates are expected to be approximately 300 boe/d (255 boe/d net).

Two of the completed Cretaceous gas zones are deemed exploration zones and therefore the Company has substantially met all of its CEE obligations from Churchill's 2006 flow-through share issuance(s).

Churchill is a Calgary-based junior oil and natural gas company with operations in Alberta and Saskatchewan. The common shares of Churchill are listed on the TSX Venture Exchange and trade under the symbol "CEI".

Forward Looking Statements: Certain information regarding Churchill in this news release including management's assessment of future plans and operations, production estimates, drilling inventory and wells to be drilled, timing of drilling and tie-in of wells, productive capacity of new wells, capital expenditures and the timing thereof, may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, 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. As a consequence Churchill'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 events anticipated by the forward-looking statements will transpire or occur, or, if any of them do so, what benefits Churchill will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Churchill's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), at Churchill's website (www.churchillenergy.ca). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Churchill 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.

BOEs 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 release.

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