March Resources Corp.

March Resources Corp.

January 09, 2008 12:50 ET

March Resources Corp. Begins the Initial Pica Well

CALGARY, ALBERTA--(Marketwire - Jan. 9, 2008) - March Resources Corp. ("March") (TSX VENTURE:MCF) is pleased to provide an update on its operations on the project in Northern Chile. March reports that further to its announcement on December 20, 2007, the rig has been transported to the drilling location at Pica #1. The rig crew is on site and rig up has commenced. March anticipates that the well will spud on or about January 21, 2008. It is further anticipated that drilling operations for this well will be completed in approximately 45 days. Logging results should be available immediately thereafter. It is anticipated that the Pica #2 well will spud shortly after the completion of the Pica #1 well. March has a 100% interest in the prospect, subject to an overriding royalty of 3%.

Pica Project

In 2007, March was awarded from the Ministry of Mining and Energy of Chile through the execution of a Special Operations Contract ("SPOC") exclusive oil and gas exploration and development rights to two blocks in Northern Chile in the Tamarugal Basin. The Pica North and Pica South blocks in this basin consist of a total of approximately 9,500 square km (2,500,000 acres). The SPOC outlines the exploration and development rights on the blocks, which are valid for a period of 35 years and outlines the work commitments that are required for each of the two blocks.

March has received an independent assessment of the potential resource on the Pica North Block gas accumulation in a report that was prepared by a qualified reserve evaluator ("Pica North Report"), estimating the prospective resources of the Pica #1 drilling location effective as at June 30, 2006. The Pica North Report estimated gross gas resources for the Pica #1 well in a range of estimated-unrisked gross prospective gas resources from 86 BCF to 1.5 TCF, with the best estimate of 655 BCF of recoverable gas. The report further estimated a geologic risk adjusted gross prospective gas resource of 94 BCF of gas for the Pica #1 well. The Pica North report has been prepared in accordance with National Instrument 51-101 as it pertains to the evaluation of prospects and resource. March has filed the Pica North Report on SEDAR and encourages readers to review the report in its entirety for additional information. The report is subject to a number of qualifications and assumptions and discloses no reserves of any nature.

Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be subclassified based on project maturity. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

The report estimates the primary structure, on the North Pica Block, as presently mapped with the current geophysical control, to be approximately 16 miles long and 4 miles wide, with a vertical closure of 2,500 feet. Three objective sandstone horizons have been identified as a result of detailed stratigraphic and seismic studies at depths of 4,300 feet, 7,000 feet and 8,470 feet. Porosities in the range of 12-19% and permeabilities up to 5 MD have been measured in the surface outcrops. In addition there is a fourth target zone which encompasses approximately 2,000 feet of black shale that has being planned to be tested for prospective shale gas development.

The Tamarugal Basin of Northern Chile is a Jurassic age back-arc basin with strong similarities to the very prolific, Cretaceous age, Neuquen Basin of Argentina. Thick accumulations of petroliferous, black marine shales with interbedded, craton derived, sandstone reservoir beds are common in both basins. The surface of the Tamarugal Basin is the extremely arid Atacama Desert.

During the period from 1996 through 2001 various exploration operations were conducted on the Pica North Block were conducted. These operations included the shooting of 430 kilometres of 120-fold seismic data, the reprocessing of 224 kilometres of 24-fold seismic data, the acquisition of 2,071 gravity stations, 2,000 kilometres of continuous magnetic survey, and the examination of 60 surface sections. Extensive satellite, geochemical, petrological, palynological, and detailed, all-inclusive computer-generated basin evaluation studies were also conducted.

The results of the extensive field investigations confirmed the presence of a Jurassic back-arc basin, similar to the prolific Neuquen Basin of Argentina, with over 6,000 meters of marine sandstones, oolitic limestones, and black shales with total organic carbon values as high as 6%. A series of north-south compressional folds/thrusts were mapped on the surface and in the sub-surface by the most current geophysical techniques.

As a result of the thickness of the vast black shale source-bed sequence, as well as the thermal history, modeling efforts by Platte River Associates, an independent engineering and consulting firm, have indicated that prospects are likely to be gas prone. The modeling program indicates gas saturation of all Jurassic and Cretaceous sandstone reservoir beds.

The initial two drilling locations have been selected to test and evaluate the North Pica Block. The initial locations incorporate the end results of four seismic line crossings, shale geochemical analyses, two years of surface stratigraphic studies, gravity and magnetic analyses, thermal studies, and detailed computer generated basin studies.

Safe Harbour

Statements in this press release may contain forward-looking information including expectations of future operations, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income and oil taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

The TSX-Venture Exchange has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release.

Contact Information