TG World Energy Corp.

TG World Energy Corp.

March 08, 2010 09:00 ET

TG World Relinquishes Interest in Sak River 1A Exploration Well

CALGARY, ALBERTA--(Marketwire - March 8, 2010) - TG World Energy Corp. (TSX VENTURE:TGE) ("TG World" or the "Company") announced today that Brooks Range Petroleum Corp. ("BRPC"), the operator of the Alaska North Slope Joint Venture ("JV") and a wholly owned subsidiary of the Alaska Venture Capital Group ("AVCG"), has advised that the Sak River 1A exploration well recovered water and a minor amount of oil during a production test conducted on March 5 and 6, 2010. The JV partners will be conducting further tests on the well; however, TG World has elected not to participate in these tests and will relinquish its interest.

The basal portion of the Kuparuk C-1 sandstone from 11,920 to 12,002 feet measured depth was perforated through seven inch casing. Initial flowing pressure was 1,147 pounds per square inch. An initial flow of approximately 106 barrels of diesel completion fluid into a storage tank was achieved in five hours. The flow was then directed to a second tank through a separator where flow rates stabilized at 1,100 barrels of fluid per day over a 24 hour test period. The fluid composition was measured as 97% water on average with minor oil and gas content.

TG World paid 45.7% of the drilling, completion and testing costs of the Sak River 1A well to earn its 35% equity interest. This well is the third of a four well promote program required by TG World in Alaska. As a result of the unsuccessful well at Sak River 1A and under the terms and conditions of the project agreements, TG World will relinquish certain working interests in the Beechey Point Unit ("BPU") leases in Alaska to AVCG.

TG World has now completed its 2010 Alaska drilling program as it will not participate in the drilling of North Shore #3 exploration well with the other Alaska JV partners. TG World will maintain a net profit interest after payout in the North Shore #1 oil discovery made in 2007. TG World will also retain acreage in the Beechey Point Unit outside of the drilling blocks of Sak River, North Shore and Pete's Wicked acreage. TG World maintains its 25% working interest in all leases outside of the Beechey Point Unit, except the recently announced North Tarn farm-in where TG will earn a 20% working interest.

Drilling of the North Tarn exploration well, which had been considered for the 2010 drilling season, is now planned to be drilled in the 2011 drilling season due to the limited time remaining in the 2010 drilling season in Alaska. 

Corporate Profile

TG World is a Calgary-based, junior international oil and gas exploration company currently focused on Alaska and Niger.

TG World Energy Inc. (a wholly owned subsidiary of TG World) is a participant together with Alaska Venture Capital Group, Brooks Range Development Corp. and Ramshorn Investments Inc. in a joint venture that is pursuing oil and gas opportunities on the Central North Slope of Alaska. The operator of the joint venture is Brooks Range Petroleum Corp., a wholly-owned subsidiary of the Alaska Venture Capital Group. The JV holds oil and gas interests in four geographical areas in Alaska: the Beechey Point Unit, North Tarn, Tofkat and Slugger/South Thomson.

TG World Petroleum Limited (a wholly-owned subsidiary of TG World) is a participant together with operator CNPCIT, a unit of the China National Petroleum Company, in the Ténéré Block oil and gas concession in the Republic of Niger, Africa. The Company has a 20% carried interest in the Ténéré Block, which contains the northern half of the Termit - Ténéré Rift, a large rift valley basin in the country. The southern half of this rift is located in the adjacent Agadem Block, where the Chinese National Petroleum Company holds several oil and gas discoveries.

Certain information set out in this News Release constitutes forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in some cases, information supplied by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from third parties is reliable, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include, but are not limited to, such things as general economic conditions in Canada, the United States and elsewhere, the volatility of prices for oil and gas and other commodities, commodity supply and demand, fluctuations in currency and interest rates, inherent risks associated with the exploration of oil and gas properties (including mechanical problems), timing, results and costs of exploration and development activities, availability of financial resources or third-party financing, availability of equipment and personnel and new laws and regulations (domestic and foreign). Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this News Release and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes. Forward-looking statements respecting the drilling of a North Tarn exploration well are based upon the results of prior exploration activities, the status of TG Energy's discussions with the operator and other JV participants as to the nature and extent of the Alaska exploration program, advice received from the operator of the JV and the current budget for exploration and development activities in Alaska (which are subject to change). Forward-looking statements of TG World Energy Corp. contained in this News Release are expressly qualified, in their entirety, by this cautionary statement. Additional information relating to various risk factors to which TG World is exposed in the conduct of its business (and which may affect the expectations or outcomes reflected in the forward-looking statements contained in this News Release) are described in publicly available documents filed by TG World with certain securities regulatory authorities in Canada, which are available through SEDAR at

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release and the TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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