Canoro Resources Ltd.
TSX VENTURE : CNS

Canoro Resources Ltd.

November 08, 2006 12:52 ET

Canoro Updates Drilling Program

CALGARY, ALBERTA--(CCNMatthews - Nov. 8, 2006) - Canoro (TSX VENTURE:CNS) announces that the Australian drilling rig contracted for its upcoming drilling campaign has started to arrive at the Amguri field in northeast India. Approximately half of the rig has already arrived in Amguri, with the remainder due over the next few weeks. Drilling operations are expected to begin on schedule in the second half of November.

Canoro is embarking on the largest capital program in its history. The five well drilling program beginning imminently, is planned to be completed in the second quarter of 2007. This program will test significant resource potential in the Amguri development block and the AA-ON/7 exploration block. Canoro's share of the five well drilling program is expected to cost approximately US$20 million.

"Our shareholders have patiently waited for this work program to begin," commented Les Kondratoff, Canoro's President and CEO. "We are now on the verge of rewarding that patience, as we expect this drilling program to unlock significant value in these assets."

Amguri

Canoro plans to directionally drill two appraisal wells at Amguri from a well pad adjacent to the Amguri 6 well. The first deviated appraisal well (Amguri 10) is targeting the Barail reservoir, the field's main producing formation, at a depth of approximately 3,000 meters and a lateral displacement of approximately 1,000 meters south, and the basement at a depth of approximately 4,000 meters and a lateral displacement of 1,500 meters south from Amguri 6. The final subsurface target of the second appraisal well (Amguri 11) is dependent on the results of the first well.

Directionally drilling the wells from a pad provides a number of advantages. Among these are the proximity to the Amguri 6 facilities for quick tie-in and production, reducing infrastructure requirements, lower operating costs and optimizing future drilling.

AA-ON/7

Canoro plans to drill three vertical exploration wells, testing four independent prospects in the western portion of the block. By independent prospects, we mean success or failure in any one exploration well has no bearing on another well's anticipated results.

Dolakharia - The first well is planned to be drilled to basement at an approximate depth of 1,800 meters, testing a 40 km2 amplitude anomaly in the Tipam. There are also deeper secondary targets. If successful, a number of follow-up Tipam prospects have also been identified.

Borkathani - This exploration well will test the 42 km2 of Cretaceous prospect structurally higher than the Dergaon-1 well (which tested two gas zones during a reentry last year). This well is planned to be drilled to basement at an expected depth of 1,500 meters.

Sonakhet - This exploration well will test the 16 km2 Barail sub-crop prospect and a 15 km2 basement high. The well is planned to be drilled to basement at an expected depth of 1,500 meters.

For the continued evaluation of the block, Canoro also plans to acquire an additional 150 km of 2D seismic on the eastern portion of the block in early 2007. This area of the block lies within the states of Assam and Nagaland and is prospective for large sub-thrust structures.

AA-ONN-2003/2

The seismic acquisition program has restarted after the monsoon season. A total of 12 km of 2D seismic has been acquired during the last working season. Acquisition of a further 188 km of 2D seismic is planned for the current field season. Data acquisition is planned to start before year-end. The operator also purchased 34 km of 2D seismic from Oil India Ltd., which has been processed and interpreted. A few prospects have already been identified in the central part of the block and tendering for drilling operations is underway. The current plan is to begin drilling on the block in the fourth quarter of 2007.

Canoro is a Canadian-based international oil and gas company operating in the prolific Assam/Arakan basin of northeast India. Canoro is the operator of Amguri field with a 60% working interest. Canoro is the operator with a 65% working interest in the AA-ON/7 exploration block, and has a post-farmout 15% non-operated working interest in the 295 km2 AA-ONN 2003/2 exploration 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 statements are generally identifiable by the terminology used, such as "intend", "plan", "expect", "appears", "anticipate", "estimate", "budget", "outlook" 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
    Director, Investor Relations and New Ventures
    (403) 543-5748
    (403) 543-5740 (FAX)
    or
    Canoro Resources Ltd.
    2810, 715 - 5th Ave SW
    Calgary, Alberta T2P 2X6
    Website: www.canoro.com