Habanero Resources Inc.

Habanero Resources Inc.

April 06, 2010 03:01 ET

Habanero Resources Inc.: Alberta Oil Sands Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 6, 2010) - Habanero Resources Inc. (TSX VENTURE:HAO)(PINK SHEETS:HBNRF)(FRANKFURT:HRJ) ("Habanero") has been informed of the following update in regards to its interest in Andora Energy Corporation ("Andora"). Pan Orient Energy Corp. ("Pan Orient"), which has 53.2-per-cent-ownership in Andora, on March 31, 2010, released its December 31, 2009 National Instrument 51-101 compliant reserves appraisal for its heavy oil project at Sawn Lake Alberta, Canada, as evaluated by DeGolyer and MacNaughton Canada Limited ("DeGolyer and MacNaughton").

Sawn Lake, Alberta Project Summary and Highlights:

- Net present value (discounted at 10% after income tax using forecast prices) attributed to Sawn Lake probable reserves is $875 million for Andora;

- Andora's Sawn Lake probable + possible recoverable reserves of 235.3 million barrels of oil, unchanged from prior year; and

- Andora has received Commercial Scheme Approval for a Steam Assisted Gravity Drainage (SAGD) recovery process under the Oil Sands Conservation Act from the Energy Resources Conservation Board (ERCB) and approval from the Government of Alberta under the Environmental Protection and Enhancement Act (EPEA). The Pilot location is on Andora 100% owned acreage within the South Block of its Sawn Lake Property in the Peace River Oil Sands Region.

The objective of the pilot is to demonstrate the feasibility of producing bitumen from the Bluesky zone at economic rates as well as the technical feasibility of the SAGD thermal recovery process allowing Andora to validate the design of the commercial project. The pilot will consist of a single well pair and associated steam injection and bitumen production facilities for an estimated cost of $15-million. All season access into the site is now completed.

Habanero acquired 700,000 common shares of Andora for consideration of $350,000. In September 2006, Habanero was given the option to tender its shares in Andora for cash and shares in Pan Orient valued at approximately $1.25 per share but chose not to.

Jason Gigliotti, President of Habanero stated, "Andora is advancing its SAGD project with the ultimate goal of going into production. They have achieved milestones that put them on track to achieve this goal. Management still believes in the future growth of the Alberta Oil Sands as Habanero has interests in significant acreage in this region and has upside growth potential through the Andora shares we still own. With oil prices recently advancing management may re-evaluate the Oil Sands assets of Habanero going forward. Not only is Habanero a holder of Oil Sands assets, Habanero has multiple other projects and management anticipates being active on at least one of these projects in the coming weeks."

Habanero is a diversified junior company with the following prospects: acreage in the Alberta Oilsands; land in the Yukon, bordering Underworld; the Haldane Silver Prospect in the Yukon; a sizable land holder within the land prospective for lithium in Alberta; two prospects in the Stewart Mining Region of BC, one bordering Canasia Industries Corporation's Clone Prospect and the other in the vicinity of the discovery made by Decade Resources Ltd.; land in the Barkerville Gold Camp of BC bordering Barkerville Gold Mines Ltd., and property in the Red Chris Mining Region of BC near Imperial Metals Corp.

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Habanero Resources Inc.

Jason Gigliotti, President

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

Contact Information

  • Habanero Resources Inc.
    Jason Gigliotti
    604 646 6900