Bison Resources Ltd.
TSX VENTURE : BIS.A

Bison Resources Ltd.

September 22, 2005 11:00 ET

Bison Resources Ltd. Bakken Development Update

CALGARY, ALBERTA--(CCNMatthews - Sept. 22, 2005) - Bison Resources Ltd. (TSX VENTURE:BIS.A) ("Bison") announced results from its ongoing activity in developing the Bakken Formation light oil play in Southeast Saskatchewan through horizontal drilling. Bison's current production is 1,910 BOPD, of which the Bakken contributes approximately 930 BOPD. Prior to the end of September, when current completion operations on three recently drilled wells are finished, Bison's daily production will exceed the benchmark of 2,000 BOPD.

Currently Bison has a total of 29 wells onstream in the greater Viewfield area, comprised of 19 vertical oil wells and 10 multi-leg horizontal wells. Additionally, Bison has three horizontal Bakken wells commencing completion operations and two vertical re-entry/re-completion wells will be fracture treated by the end of September. Bison has two drilling rigs under contract, each drilling three leg horizontal wells. For the remainder of the year Bison plans to drill a further 11 locations on its 100% working interest lands.

As the drilling program has proceeded, Bison has fine tuned the geological interpretation and continues to high grade its opportunities at Viewfield. In the center of the "sweet spot" Bison drilled two wells which encountered approximately 2,000 meters of open hole porosity each and flowed oil during the drilling process. The first of these wells has just been placed onstream, initially producing at a restricted rate of 130 BOPD with no water. The well is indicating steadily stronger inflow as it cleans up and will be increased incrementally to 300 BOPD. The second well is being completed and has produced with swab/flow rates in excess of 400 BOPD of clean oil, although Bison expects to produce it at rates similar to the first well. The last two horizontal wells yet to be completed are expected to exhibit similar production profiles.

Associated with the oil production are significant volumes of solution gas and to capture the value of that product Bison has initiated construction of a gas process facility to be located offsetting the present Viewfield battery. The plant is being designed to initially compress 1,500 mcf/day of gas with a process component capable of handling 3,000 mcf/day. The design specifications also include an ammine unit, to accommodate any Mississippian sour gas, and a refrigeration package to remove the liquids, calculated at 146 barrels of LNG's and 7 barrels of condensate per MMcf. The gas plant is projected to be fully operational in early 2006 and will add approximately 450 BOEPD to Bison's current production.

Bison Resources Ltd. is an Alberta-based public corporation actively engaged in the exploration, development, acquisition and production of oil and natural gas in western Canada. Bison's shares are listed for trading on the TSX Venture Exchange under the symbol BIS.A.

CAUTIONARY STATEMENT:

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release may include certain "forward looking statements". All statements other than statements of historical fact included in this news release, including, without limitation, statements regarding reserves, present value of future cash flow, exploration results, and future plans and objectives of Bison, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Bison's expectations are exploration risks, production risks and pricing risks detailed herein and from time to time in other filings made by Bison with securities regulators.

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

Contact Information

  • Bison Resources Ltd.
    Nicolas S. Swagor
    President
    (403) 265-5565
    (403) 266-8886 (FAX)
    Website: www.bisonresources.com
    or
    Bison Resources Ltd.
    500, 505 - 8th Avenue SW
    Calgary, Alberta T2P 1G2