Defiant Resources Corporation
TSX : DFR

Defiant Resources Corporation

October 31, 2007 09:00 ET

Defiant Resources Corporation Provides Operational Update: Current Production Exceeds 1,500 Boepd

CALGARY, ALBERTA--(Marketwire - Oct. 31, 2007) - Defiant Resources Corporation ("Defiant" or the "Company") (TSX:DFR) is pleased to announce the results of recent drilling, completions and tie-in activities. With two additional gas wells drilled in October Defiant has now drilled 10 (7.9 net) wells this year for a 100% success rate. Three new gas wells have been placed on production in October raising current production to over 1,500 boepd. The imminent tie-in of our most recent Clairmont well together with the installation of compression will increase Company production to over 1,600 boepd.

2007 Production Update

The successful 2007 drilling program will allow Defiant to exceed its previously stated 2007 production exit guidance of 1,500 boepd. The Company placed two (2.0 net) wells at Karr and one (0.8 net) well at Clairmont on production in October. Defiant's current production is in excess of 1,500 boepd with an approximate 80/20 gas/oil split. Production for 2007 is expected to average 1,250 boepd.

Operations Update

This October we have drilled and cased two (1.6 net) successful gas wells. The first well (1.0 net) was drilled at Gold Creek and the second well (0.6 net) at Clairmont. We plan on completing both wells shortly and, as the Clairmont well is close to existing pipeline infrastructure, we will have it on production in November. Based on the performance of our offsetting wells in the Clairmont area, and with the installation of a portable compressor, we will add 120 to 150 boepd to our net production.

During the balance of the fourth quarter we plan to drill three (2.7 net) wells at Karr, Grande Prairie East and Atim to fulfill contractual obligations. These locations are considered to be developmental given their proximity to wells currently on production.

To date, the Company has enjoyed a 100% drilling success rate in 2007. Gross and net wells drilled this year are summarized in the table below:



Classification Gas Oil Service Total
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Development 3.0 (2.6 net) 2.0 (1.1 net) - 5.0 (3.7 net)
Exploration 4.0 (3.8 net) - 1.0 (0.4 net) 5.0 (4.2 net)
Total 7.0 (6.4 net) 2.0 (1.1 net) 1.0 (0.4 net) 10.0 (7.9 net)


Reserves and Alberta Crown Royalty Update

At this time we believe the impact of the Alberta government's announced changes to the royalty regime will reduce the value of our August 31, 2007 proved plus probable reserves discounted at 10% by approximately $5 million. This reduction represents a decrease of approximately 7 to 8%. It is anticipated that this reduction in value will be offset by increases to our reserves value associated with the recent drilling and completion results. We expect to provide more detail regarding reserves and the discounted value of reserves net of the announced royalty changes with our third quarter results to be released by mid November.

Increase to Credit Facilities

As a result of our August 31, 2007 reserves update, our line of credit has been increased from $18 to $20 million.

Shareholder Value Maximization Process

The Company has extended the deadline for bids until mid November to allow potential bidders to incorporate the recent drilling results, increased production and the impact of the announced royalty changes into their assessment of Defiant's value.

Forward Looking Statements - Certain information regarding Defiant Resources Corporation set forth in this document, including management's assessment of Defiant Resources Corporation's future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties including resolution of various land owner issues These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Defiant Resources Corporation's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Defiant Resources Corporation's actual results, performance or achievement 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 that Defiant Resources Corporation will derive therefrom. In addition, the term boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf = 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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