Canoro Resources Ltd.

Canoro Resources Ltd.

March 30, 2005 09:21 ET

Canoro Announces Test Results of Dergaon #1 Well


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANORO RESOURCES LTD.

TSX VENTURE SYMBOL: CNS

MARCH 30, 2005 - 09:21 ET

Canoro Announces Test Results of Dergaon #1 Well

CALGARY, ALBERTA--(CCNMatthews - March 30, 2005) - Canoro Resources Ltd.
(TSX VENTURE:CNS) ("Canoro" or the "Company") announces the test results
for Dergaon #1 well which was originally drilled in 1973. Canoro has
conducted a gas deliverability test program on the Late Cretaceous in
the well. The well was successfully re-entered, logged and tested. The
casing integrity of this well was found to be good; however, the cement
bond over the zones of interest was deficient in some areas. Evaluation
of the cased hole logs highlighted four test zones between 1,709 meters
to 1,259 meters. In addition, logs have indicated a potential shallow
gas zone between 500 and 600 meters.

The uppermost zone produced gas at a rate of 0.5 to 0.75 million cubic
feet per day. The zone was flowed for over 24 hours at constant pressure
and volume. Water production related to the poor cement bond prohibited
a full evaluation of the zone's potential.

Testing has proved the presence of the highly porous sands. Formation
damage and poor cementing during the original drilling of the well
resulted in poor deliverability from three bottom zones. Due to the
unavailability of well stimulation (fracturing and acidizing) equipment
in Assam, Canoro was unable to conduct remedial operations to these
zones.

Canoro is pleased with results of this workover which has confirmed the
existence of hydrocarbon bearing sands. Dergaon #1 well now stands as a
suspended gas well. The data and information gathered from the re-entry
of Dergaon #1, combined with the seismic and other well data from the
AA-ON/7 Exploration Block will enhance the effectiveness of the
exploration program of AA-ON/7.

The service rig utilized at Dergaon #1 well will now be relocated to the
Amguri field to commence a three well workover program. Lease
construction on the South Jorhat exploratory well on AA-ON/7 block is
about to commence. The ZJ-30 Chinese rig is being mobilized from Mumbai
and the Company anticipates all preparation, materials and equipment to
be ready for deployment by the beginning of May.

Canoro is a well financed international oil and gas company which
operates two blocks in North East India (principally in Assam) where it
is developing three different play types in a proven basin. The
Company's work program comprises of a gas deliverability test on Dergaon
#1 well, a three well workover program on the Amguri discovered field to
rehabilitate production from three existing suspended oil wells, the
testing of an existing gas producing well on the Amguri block and the
drilling of its first exploration well on the AA-ON/7 block.

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 "forward looking" statements are subject to
risks and uncertainties that could cause actual results to differ
materially from estimated or implied results.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Canoro Resources Ltd.
    Les Kondratoff
    President & CEO
    (403) 543-5741
    (403) 543-5740 (FAX)
    or
    Canoro Resources Ltd.
    Dinesh Dattani
    Vice President, Finance, CFO and Secretary
    (403) 543-5742
    (403) 543-5740 (FAX)
    Email: mail@canoro.com
    Website: www.canoro.com
    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this news release.