Bronco Energy Ltd.

Bronco Energy Ltd.

November 15, 2006 15:17 ET

Bronco Energy Ltd. Operations Update: Vertical Test Wells Results

CALGARY, ALBERTA--(CCNMatthews - Nov. 15, 2006) - Bronco Energy Ltd. (TSX VENTURE:BCF) ("Bronco") announces that it is drilling its final location on the vertical test well program. The drilling results confirm the Company's mapping for the Upper Wabiskaw zone. The average oil pay in the Wabiskaw is 7 meters with very strong oil flows on the drilling rig sample shaker. The log response, which measures gamma ray, porosity, spontaneous potential and resistivity, was also very positive. The Wabiskaw oil sand porosity measured 31 %, with high oil saturations as evidenced by resistivities exceeding 100 ohm-meters. The test wells were drilled in the north, south and middle of the eastern block on the Bigstone Cree Nation Reserve 166. The field is now delineated for upcoming horizontal drilling into the Upper Wabiskaw horizon, which is anticipated to commence in the next week. The strong oil flows on the shaker indicates that the heavy oil will produce on primary without the assistance of pressure support from waterflood or steam. Production testing from the horizontal wells will occur shortly after the drilling rigs move off locations.

The test wells also resulted in the confirmation of two additional oil sands zones in the Middle and Lower Wabiskaw zones. These zones had similar log response to the Upper Wabiskaw and will be drilled and production tested in the future.

Additionally, the Upper Grand Rapids Steam Assisted Gravity Drainage (SAGD) oil sands zone encountered pay thickness of approximately 20 meters, with porosities of 40% and excellent crude oil bitumen staining on samples. Further test drilling is planned in this zone to determine the most prospective areas for SAGD development.

Bronco also announces that it has accepted the mutually agreeable resignation of Mr. Art Brotzell, as the President of Bronco Drilling Services Ltd. ("Bronco Drilling") for personal reasons. The existing management of Bronco Drilling will operate under the direct supervision of Bronco Energy.

Mr. Brian Alford, President and CEO, stated, "Bronco wishes to extend its sincere thanks to Mr. Brotzell for his services and wishes him well in his future endeavours. Leases are built for the horizontal drilling and Bronco is now prepared to move forward with increased confidence from its test well program and is looking forward to positive results from its upcoming horizontal well drilling and production program."

Bronco Energy Ltd. trades on the TSX Venture Exchange under the symbol "BCF".

This news release contains forward-looking statements which involve known and unknown risks, delays and uncertainties not under Bronco's control which may cause actual results, performance or achievements of Bronco to be materially different from the results, performance or expectations implied by these forward-looking statements.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

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

Contact Information

  • Bronco Energy Ltd.
    Brian Alford
    President and Chief Executive Officer
    (403) 699-8383
    (403) 693-0038 (FAX)
    Bronco Energy Ltd.
    David Johnson
    Chief Financial Officer
    (403) 699-8383
    (403) 693-0038 (FAX)