Canoro Resources Ltd.

Canoro Resources Ltd.

October 03, 2005 14:45 ET

Canoro Announces South Jorhat Drilling Results and Provides NELP V Update

CALGARY, ALBERTA--(CCNMatthews - Oct. 3, 2005) - Canoro Resources Ltd. (TSX VENTURE:CNS), operator of the AA-ON/7 exploration block in the Assam/Arakan Basin, NE India, has completed drilling and testing its first exploration well, South Jorhat 1. The well was drilled to a total depth of 2,428 meters (8,012 feet) into basement to evaluate a basement fault block structure.

The well encountered oil and gas shows in five separate formations, and was tested in three of those formations. None of the tested formations showed economic quantities of hydrocarbons. The well has been abandoned.

Block AA-ON/7 contains a number of exploration leads from three different geological play types. A follow-up 2-D seismic program on AA-ON/7 is scheduled to begin early next year to evaluate these leads with the objective of maturing a second exploration well for late 2006 or early 2007. The analysis and decision regarding Canoro's next drilling location on this block will take into account a careful review of the new information and learnings from South Jorhat 1.

The drilling rig is now being moved to Canoro's Amguri development block to re-enter the suspended Amguri 5 and Amguri 6 oil wells. Canoro expects to re-establish oil production from these wells.

NELP V Update

Canoro understands that India's Cabinet Committee on Economic Affairs has approved the award of the AA-ONN-2003/2 block to Canoro (30%) and its consortium partners (Geopetrol International Inc. - 30% and operator, National Thermal Power Corporation - 40%). The 295 km2 block is 2.5 km from the producing Kharsang oil field, which Geopetrol jointly operates, and is approximately 150 km northeast of Canoro's exploration and development blocks in Assam. Formal notification of the award to Canoro is expected shortly, following which Canoro will provide additional information for this block.

Canoro is a Canadian-based international oil and gas company operating a development and an exploration block in the prolific Assam/Arakan basin of northeast India. The Company is testing and rehabilitating production from the suspended Amguri oil and gas field where it is the operator and has a 60% working interest. Canoro has drilled one exploration well on the AA-ON/7 exploration block where it is the operator and has a 65% working interest. Common shares of Canoro trade on the TSX Venture Exchange under the symbol 'CNS'.

Certain statements contained in this news release may be considered as "forward-looking". Such statements are generally identifiable by the terminology used, such as "intend", "plan", "expect", "estimate", "budget", "outlook", "initiate" or other similar words. Such "forward-looking" statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results.

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

Contact Information

  • Canoro Resources Ltd.
    Rob McInnis
    Manager, Investor Relations
    (403) 543-5748
    (403) 543-5740 (FAX)
    Canoro Resources Ltd.
    2810, 715 - 5th Ave SW
    Calgary, Alberta T2P 2X6