Canoro Resources Ltd.

Canoro Resources Ltd.

August 28, 2007 16:53 ET

Canoro Updates Drilling Progress at Amguri 11

CALGARY, ALBERTA--(Marketwire - Aug. 28, 2007) - Canoro Resources Ltd. (TSX VENTURE:CNS) announces that it has drilled Amguri 11 through the Barail to a depth of 3327 meters. The well penetrated two sand reservoirs within the Barail Main Sand which was encountered approximately 15 meters structurally higher than in Amguri 10B, and 37 meters higher than Amguri 6. These two sands have a combined thickness of 36 meters, and display porosity, resistivity, and mud-log hydrocarbon values similar to those encountered in Amguri 10B.

A new mid-Barail reservoir zone with an interpreted 9 meter thick hydrocarbon column was discovered approximately 200 meters below the top of the Barail Main Sand. This interpretation is based on wire-line log and mud-log hydrocarbon readings, which are similar to the Barail Main Sand in Amguri 11 and in Amguri 10B. Amguri wells 5, 6, 9, 10A, and 10B were not drilled deep enough to penetrate the mid-Barail reservoir as its existence was not previously known.

These hydrocarbon indications in Amguri 11 cannot be fully confirmed until they are properly tested. It is planned to test all prospective hydrocarbon intervals after setting casing over the Barail sands, and drilling to the Basement at approximately 4000 meters. It is anticipated that testing will begin within 2 weeks.

"The real potential of Amguri has always laid in the possibility of stacked productive reservoirs, as seen in other fields in the basin. The mid-Barail is the third hydrocarbon zone encountered in Amguri Field, and we believe by drilling to basement, there is a good chance that we could encounter one or more additional deeper pay zones, The Kopili, Sylhet, Basal Sand and fractured Basement are yet to be evaluated in Amguri 11; these 4 reservoirs are productive in nearby fields," commented Bob Szczuczko, Canoro's Executive Vice-President, Reservoir and Geoscience.

Canoro is a Canadian-based international oil and gas company operating in the 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. Canoro also has a 15% non-operated working interest in the AA-ONN 2003/2 exploration block.

Common shares of Canoro trade on the TSX Venture Exchange under the symbol 'CNS'.

This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond Canoro's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Canoro's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Canoro will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Canoro or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Canoro does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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

Contact Information

  • Canoro Resources Ltd.
    Rob McInnis
    Vice President, Business Development and Corporate Affairs
    (403) 543-5748
    (403) 543-5740 (FAX)
    Canoro Resources Ltd.
    2810, 715 - 5th Ave SW
    Calgary, Alberta T2P 2X6