Thunderbird Energy Corp.

Thunderbird Energy Corp.

August 11, 2011 09:01 ET

Carbon Storage Project at Thunderbird Energy's Gordon Creek Natural Gas Field Moving Forward with Field Operations

CALGARY, ALBERTA--(Marketwire - Aug. 11, 2011) - Thunderbird Energy Corp. (TSX VENTURE:TBD)(FRANKFURT:M2Y) ("Thunderbird" or the "Company") today announced the Southwest Regional Partnership on Carbon Sequestration's (SWP) Carbon Capture and Storage (CCS) deployment phase (Phase III) to be sited at Thunderbird's Gordon Creek natural gas project located in Carbon County, Utah, is moving forward with field operations. The project is supported and managed by the National Energy Technology Laboratory (NETL) of the US Department of Energy (DOE). Thunderbird's wholly-owned subsidiary Gordon Creek, LLC is a sub-recipient of the NETL financial award and will act as the project field operator. This Phase III project is intended to demonstrate proof of concept technologies for the potential commercialization of carbon dioxide storage. A key project objective will be the storage of up to 1 million tons of CO2 per year at Gordon Creek.

The Phase III project budget is roughly $90 million, of which up to $67 million has been committed by the US Department of Energy (DOE) through the NETL - the balance to be provided by the participating organizations. The project is a multi-faceted effort by a number of entities. The lead Organization is the New Mexico Institute of Mining and Technology, with project manager Dr. Robert Lee. Dr. Lee is the director of the Petroleum Recovery Research Center, a research division of NMT. Dr. Reid Grigg of the PRRC and Dr. Brian McPherson of the University of Utah/NMT are Co-Principal Investigators. Other organizations involved in this far-reaching proof of concept research project are NETL, Los Alamos National Laboratory, Sandia National Laboratories, USTAR, Utah Geological Society, and the University of Missouri.

It is currently estimated that roughly $29 million of the overall project budget will be specifically allocated to Gordon Creek site operations, of which $23 million will be funded by the DOE. The initial phase of field operations will include an extensive 3D seismic shoot and the drilling of up to two deep (12,000 foot) CO2 source wells. The purpose of this phase to establish the potential size of the known CO2 resource at Gordon Creek and thereby secure a long-term supply of CO2, that will be sufficient to satisfy the Phase III requirements and beyond. The field program at Gordon Creek will also include drilling and/or re-completing monitoring wells, upgrading Thunderbird's existing injection facility, constructing roads, pipelines and surface facilities, as well as ongoing supervisory and monitoring operations. Operations are expected to commence immediately following the completion of required permitting.

"We are very pleased to be participating in this important commercial scale project with the Department of Energy and some of the leading North American CCS experts" stated Cameron White, CEO of Thunderbird. "The technical expertise and capital that will be employed at Gordon Creek will have substantial short, medium and long term benefits to Thunderbird".

Thunderbird Energy is an oil and gas exploration and production Company with interests in the US Rockies and mid-continent regions. Thunderbird's holdings include a light oil project targeting Niobrara oil in Eastern Wyoming, as well as the Gordon Creek, Utah natural gas field located in Carbon County, Utah. In addition to the DOE funding agreement announced today, Thunderbird also recently announced a $25 million natural gas development financing agreement for Gordon Creek with Sandstorm Metals & Energy Ltd.

Caution Regarding Forward-looking information

Information in this news release respecting the expected implementation of the SWP CO2 project, the Sandstorm development financing agreement and its planned operations and expenditures, constitutes forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, expectations, or beliefs as to future events or results are believed to be reasonable based on the information currently available to the Company. The Company does not undertake to update any such forward-looking statements unless required by applicable securities legislation.

Statements including forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company and its operations to be materially different from estimated costs or results expressed or implied by such forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information