Thunderbird Energy Corp.

Thunderbird Energy Corp.

December 21, 2009 09:00 ET

Thunderbird Announces Two Agreements for US $40 Million Third Party Investment in Gordon Creek Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2009) - Thunderbird Energy Corp. (TSX VENTURE:TBD) ("Thunderbird") today announced that it has entered into two agreements with independent third parties to invest up to Forty Million US Dollars (US $40,000,000) to further develop Thunderbird's Gordon Creek natural gas property. Both agreements are at the initial commitment, "Letter of Intent" stage and are subject to certain conditions including further due diligence and the execution of more detailed contracts. Thunderbird will manage all field operations to be conducted under both agreements.

Pursuant to the first agreement a Houston Texas based private company (the "Company") has agreed to invest up to Twenty Million (US$20,000,000) to fund a mutually agreed development plan to earn up to 50% of the Thunderbird's interest in its Gordon Creek property. The development plan contemplates the drilling and equipping of up to twenty-five (25) new wells and the re-completion and equipping of up to six (6) existing wellbores. The Company will earn an immediate 50% working interest in the spacing unit of any newly drilled well or re-completed wellbore and will earn a 50% working interest in the remaining Gordon Creek lands and production on a pro-rata basis as the total commitment of Twenty Million (US$20,000,000) is funded. Thunderbird will retain ownership of its existing facilities and infrastructure and will charge mutually agreed fees for gas gathering and compression and water treating and disposal.

Pursuant to the second agreement Thunderbird has committed to participate with a group called the Southwest Regional Partnership ("SWP") in its Carbon Sequestration Phase III: Deep Saline Sequestration Deployment Project to be sited at Gordon Creek. This project which will be funded approximately 80% by the US. Department of Energy requires a 20% contribution by the other participants. Other participants include Thunderbird, The University of Utah through the Utah Science Technology And Research initiative ("USTAR") and the New Mexico Tech – Petroleum Recovery Research Center. The development plan and budgets have not yet been finalized, but it is anticipated that the project will represent an investment in excess of Twenty Million (US$20,000,000) in wells and facilities to be situated at Gordon Creek. Current plans include re- completing up to four (4) wells as dual producing- VSP seismic monitoring wells, re-completion of the existing Gordon Creek injection well to allow for improved injectivity and the concurrent injection of produced water and CO2, plus the drilling of three (3) new deep wells up to 3,650 meters (12,000 feet) for CO2 production and injection zone monitoring. In addition to the wells, new roads, pipelines and electrical generation facilities will also be required.

The field test portion of the Carbon Sequestration Phase III project is anticipated to have a duration of three to five years. At the conclusion of the field test portion all of the facilities, including the injection and monitoring wells will vest with Thunderbird and continue to be used for natural gas production and water and CO2 disposal. Thunderbird anticipates that there will be future opportunities to use the facilities for commercial CO2 sequestration as Utah's coal fired power plants are forced to capture CO2 emissions.

Thunderbird Energy is a Canadian based oil and gas exploration and production Company with interests in the US Rockies and mid-continent regions. Thunderbird's holdings include the Gordon Creek, Utah natural gas field, the Rush County, Kansas light oil project and a light oil exploration project in Weston County Wyoming.

Caution Regarding Forward- looking information

Information in this news release respecting the reserves valuations, expected production levels, prices and anticipated total oil and gas recoveries constitutes forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, expectations, or beliefs as to future events or results are believed to be reasonable based on the information currently available to the Company. The Company does not undertake to update any such forward-looking statements.

The Company's actual reserves and future production may be greater that or less that the estimates provided. The estimated future net revenue from the production of the Company's reserves does not represent the fair market value of Thunderbird Energy's reserves.

Statements including forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company and its operations to be materially different from estimated costs or results expressed or implied by such forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

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

Contact Information