Probe Resources Ltd.

Probe Resources Ltd.

December 20, 2007 18:13 ET

Probe Resources Ltd.: High Island 115 B-1 Well Sidetrack Now on Production

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 20, 2007) -


Probe Resources Ltd. (the "Company") (TSX VENTURE:PBR) announces, further to its news release dated November 28, 2007, that the High Island Block 115 B-1 sidetrack 2 well (the "Well") has been tied in and is flowing at sustained rates of 9.3 million cubic feet of gas per day (mmcf/d). The Company's goal is to increase this rate to 15mmcf/d over time as the Well cleans up.

Gas analyses for the Well report good pipeline quality gas with a BTU (British thermal unit) rating of 1,037 BTU per cubic foot. Produced condensate volumes for the Well have varied up to 32 barrels per day, while averaging about 3 barrels of condensate per million cubic feet of gas.

The Company is currently evaluating similar additional targets within the High Island Block 115, some of which can be accessed from the current production platform. Other targets will require a separate structure. The Company is finalizing arrangements to acquire 3D seismic data overlapping an area encompassing up to 12 offshore blocks, including the High Island Block 115.

The Well is subject to the High Island Block 115 Lease (the "Lease"). As previously disclosed, the Company has a 47.0031% working interest ("WI") with a 35.2626% net revenue interest ("NRI") in the Lease and is in the process of having these interests assigned to it for approval by the Minerals Management Service (the "MMS"). Other third parties have interests in the Lease, including Republic Petroleum, LLC ("Republic") as to a 27.5% WI and 25.083332% NRI, Maxim Resources Inc. ("Maxim") as to a 20% WI and 10% NRI and Sierra Pine Resources International Inc. ("Sierra") as to a 3.865% override. The remainder of the NRI in the Lease totaling 9.12237% is held by various investors. The MMS retains a fixed royalty of 16 2/3% in proceeds from the Lease.

With respect to the Well, the Company has, by way of its acquisition of the Lease, a WI of 41.54486% and a NRI of 30.91863%. Other third parties have certain interests in the Well, including Republic as to a WI of 23.75% and a NRI of 20.01%, Maxim as to a WI of 20% and a NRI of 10% and Sierra as to a WI of 1.25% and a NRI of 4.865%. The remainder of the NRI and certain overrides in the Well totaling 17.53967% are held by various investors. The MMS retains a fixed royalty of 16 2/3% in proceeds from the Well. Payouts from the Well to non-governmental entities are subject to division orders.

The WI and NRI interests listed above for entities other than the Company are estimates based on information provided to the Company from third parties and may not necessarily reflect current interests held by such parties.

The Company also announces that the debenture transaction previously announced on October 21, 2007, is not proceeding.

For more information on the High Island Block 115, see the Company's technical report dated July 12, 2007, prepared by Quantum Oil & Gas, LLC and available on the Company's SEDAR profile at


Bruce Ganer, Director

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933 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 United States Securities Act of 1933 and applicable state securities laws or an exemption from such registration is available.

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

Contact Information

  • Probe Resources Ltd.
    Bruce Ganer
    (604) 638-1255
    (604) 638-1265 (FAX)