Probe Resources Ltd.

Probe Resources Ltd.

March 09, 2010 09:19 ET

Probe Provides Operational Update

THE WOODLANDS, TEXAS--(Marketwire - March 9, 2010) - Probe Resources Ltd. (the "Company" or "Probe") (TSX VENTURE:PBR) is pleased to provide an operational update on its development activities in the Gulf of Mexico as follows:

East Cameron 36/37

As previously disclosed, production commenced from the field in early February. The EC 36 A-1 well is currently producing water-free at a gas rate of 5.3 MMCF/D with a condensate rate of 54 BCPD and flowing tubing pressure of 2,800 psi. The EC 37 A-2 well has experienced mechanical issues which require remediation. The well unexpectedly began producing water upon start-up. Diagnostics have been performed on the well utilizing various production logs which indicate water flow from a deeper horizon behind production casing. A lift boat is currently mobilizing to the EC 37 platform in order to facilitate the pumping of a water block treatment which has proven to be effective in similar situations and should isolate the water sand from the productive sand. Results of the treatment should be known in the next few weeks. Probe is the operator and holds a 52% working interest ("WI") and a 35.4% net revenue interest ("NRI") in the wells prior to project payout. Petrodome EC, LLC owns a 44% WI and 32.1% NRI in the wells prior to project payout.

South Timbalier 214

The ST 214 A-6 Sidetrack is currently producing at a gas rate of 7.0 MMCF/D and condensate rate of 60 BCPD. It also produces approximately 3,200 BWPD. The well has produced nearly 10 BCF of gas and 112,000 barrels of condensate to date. Production has significantly exceeded the projected reserve estimates conducted by Probe's third party reservoir engineers at the time of initial production. Probe is the operator and holds a 100% WI and 68.5% NRI prior to project payout. Probe has tentative plans to drill the ST 198 A-7 Sidetrack from the ST 198 platform targeting attic reserves in previously produced sands in the ST 198 lease. The lease was acquired in 2009 subsequent to purchasing the platform used to develop the ST 214 A-6 Sidetrack well.

High Island 115

The HI 115 A-1 Sidetrack well continues to be shut in due to decommissioning of the host processing platform in HI 71 and related disconnection of the sales export pipeline. Probe has been evaluating two viable processing platform options to recommence production. Project sanction is expected in March2010 with commencement of production at 7-10 MMCF/D during mid-year 2010. Probe, non operator of the well, currently owns a 41.54% WI and 30.92% NRI in the well.

East Cameron 246

The company continues to progress toward the development of the EC 246 #2 gas discovery. A Purchase and Sale Agreement has been signed with another operator to acquire a production platform in the Gulf of Mexico. The platform will be moved over the EC 246 #2 well late in the 2nd quarter of 2010. The well will then be completed as a single completion in the Lentic 1 Sand. Probe is operator and currently holds a 100% WI and 68.5% NRI in the well.

CEO and Chairman, Scott Broussard reports: "Although we were disappointed with the EC 37 A-2 water issue, we believe the remediation steps underway should address the issue and allow for the well to commence production. We are also very encouraged about the EC 246 #2 and the ST 198 A-7 wells. These projects will potentially have a significant impact on production volumes and resulting operational cash flow for Probe."

About Probe Resources Ltd.

The Company, including its wholly-owned subsidiary Probe Resources US Ltd. located in The Woodlands, Texas, is an oil and natural gas exploration and production company focused on generating, acquiring, developing, and operating drilling prospects within the Texas and Louisiana Outer Continental Shelf of the Gulf of Mexico.


"Scott Broussard"

Chief Executive Officer and Chairman of the Board

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the Company's securities in the United States. The Company's securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Statements in this press release may contain forward-looking information including expectations of future operations (including drill rig commitments and use of proceeds), commerciality of any gas discovered, production rates, 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, or reservoir performance, 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information