Caribou Resources Corp.

Caribou Resources Corp.

July 04, 2005 20:25 ET

Caribou Resources Corp Announces Closing of $10.0 Million Development Bridge Facility

CALGARY, ALBERTA--(CCNMatthews - July 4, 2005) - Caribou Resources Corp., (TSX VENTURE:CBU), ("Caribou"), is pleased to advise that it has closed the previously announced $10.0 million development facility with Brascan Bridge Lending Fund.

Caribou will commence its planned development and exploration program in July with a horizontal exploitation program in the Redwater area of Central Alberta on its existing Basal Quartz light oil pool on lands in which the Company has a 50 -100% WI, has a 70% WI in a 2,500 bopd oil battery and sales gas pipeline, and is operator. Based on analogous pools in the area, the Company estimates that there is up to 5.0 million barrels OOIP (original oil in place) and up to 2.0 million barrels of recoverable reserves. At this time, the Company estimates that it has recovered less than 300,000 barrels of reserves. Consequently, the Company is confident that significant development potential still remains in the pool. The Company will also pursue the delineation and potential development of a new Basal Quartz pool discovery made late in 2004 as part of the drilling program in this area.

The Q3 program will also include the drilling of up to three high impact multi zone prospects on the Peace River Arch where Caribou has a 70% WI and is operator. The first of these prospects has the Charlie Lake, Montney, and Kiskatinaw formations as primary targets. Analogous structures in the area have recovered over 10 bcf of reserves with individual well rates as high as 6.0 mmcf/d a day. Caribou's management believes that this higher risk, higher reward program is an excellent balance to the development program in Central Alberta.

Caribou Resources Corp. is an opportunity rich company with high working interests in over 130,000 net acres of undeveloped land focused in two core areas and operates over 85% of its production. The Company has 28.2 million basic shares outstanding and expects to cash flow over $13.0 million for the year.

This news release may contain forward looking statements. Actual results may differ materially from those contemplated. The risks, uncertainties and other factors that could influence actual results are described in documents filed with regulatory authorities.

Contact Information

  • Caribou Resources Corp.
    Christina M. Fehr
    Vice Chairman & CEO
    (403) 539-4322
    Caribou Resources Corp.
    Ross Robertson
    President & COO
    (403) 539-4316
    Caribou Resources Corp.
    Suite 1545, 101 - 6th Ave SW
    Calgary, Alberta, T2P 3P4