Caribou Resources Corp.
TSX VENTURE : CBU

Caribou Resources Corp.

April 04, 2006 12:29 ET

Caribou Resources Provides Update on Winter Program

CALGARY, ALBERTA--(CCNMatthews - April 4, 2006) - Caribou Resources Corp., (TSX VENTURE:CBU) ("Caribou" or the "Company") announces that it will release its audited 4th quarter and 2005 year end results as well as its year end engineering report on April 13, 2006. The company is pleased to provide the following update on the winter capital program.

- Since commencing the winter program on January 20, 2006 Caribou has participated in the drilling of 11 wells (74% WI), completed two significant dual completions (100% WI), tied in five wells (100% WI), shot 22 sq. kms of 3D seismic and acquired 8,960 acres of 100% WI Crown lands offsetting successful production projects.

Larne/Tate

- Seven wells have been drilled and cased (66% WI) targeting the Slave Point / Sulphur Point formations in this area. The Company and its joint venture partner have commenced completions on six of the wells to date. Two wells (50% WI) in the Tate area have initial Sulphur Point test rates of 6 mmcf/d and 2.3 mmcf/d respectively. A third Tate well (12.5% WI) has tested 2 mmcf/d from the Sulphur Point. The operator is in the process of tieing in the first two wells and has advised that the third well will be tied in next winter. During the quarter Caribou was also successful in acquiring a 100% WI in an additional eight sections (5,120 net acres) of Crown lands adjacent to its drilling program in this area and will follow up with drilling on these lands next winter.

- Caribou also has an initial Slave Point test rate of 1 mmcf/d from a fourth well (100% WI), a new step out discovery well. The well is a step out from the main Slave Point pool where the Company has a significant adjoining high working interest land position. The main pool has approximately 20 bcf of IGIP and has recovered less than 5 bcf to date. This well was drilled at the end of the drilling program and will be tied in next winter.

- A fifth well (100% WI), a development well, is believed to be in the main Slave Pt. pool and is currently being completed. The well has been tied in to the Central Larne facility (52.5% WI). Perforation and stimulation operations are underway on that well and two other wells at Larne which, pending results, will be tied in next winter.

Steen River

- The Company is in the final stages of executing two significant dual recompletions of existing wells (100% WI) acquired as part of the acquisition completed in the fall of 2005 in the Steen area. One of the wells will be dually completed to allow for production from the Slave Point and Sulphur Point formations in one well and Slave Point and Keg River formations in the second well. While these operations are complicated and required the shut in of existing production of approximately 300 boe/d for the duration of the operations throughout February and March, Caribou estimates that the initial new incremental on stream production from these dual completions may be as high as 300 boe/d pending successful completion of the operations. These wells are expected to be back on production in the next week.

- Caribou has also drilled and cased two wells (100% WI) in the Steen area. The Company is currently completing one of the wells as a Keg River oil producer. The well is a step out well to a significant long reserve life Keg River oil producer. The original well (100% WI) commenced production in early 2001 at approximately 150 bopd, and was still producing at 20 bopd before a recent re-stimulation. Post stimulation swab rates exceeding 125 bopd on a production test have been obtained. This original well, which has produced approximately 85,000 bbls of 31 API light oil to date, is expected to be placed back on production by the weekend. Within five miles on a similar geological structure where the Company currently has 20% WI interests, single Keg River wells have recovered between 500,000 and 700,000 bbls and are still producing at rates between 75 and 230 bopd (gross) since coming on production at initial rates of 200 to 400 bopd in the late 1990's. The Company believes that this step out well confirms the presence of an exciting light oil development project that may have up to six infill locations on 40 acre spacing based on 3D seismic over the structure. The new Keg River well has been completed and swab tested at an initial rate of over 150 bopd on a production test. The well is tied in and pump and rods are being run today. This step out discovery is a particularly important development for the Company as the lands are located in an area that is geographically more elevated than surrounding muskeg areas, allowing for year round road access. Dependent on weather and regulatory constraints, the Company is intending to get this well on production before the summer. The Company is currently pursuing down spacing and the building of an all weather road (three miles) to enable infill drilling of the Keg River structure. The Company expects to complete this road during the summer of 2006 and commence infill drilling at that time. The wells will be produced into an existing oil gathering line and oil treating battery where the Company has existing ownership.

The Company is currently completing a significant seven mile pipeline at Steen West that will allow the tie-in of three existing wells (100%) WI that have initial production tests ranging from 800 mcf/d to 1.5 mmcf/d. Depending on weather and regulatory constraints, the Company is attempting to get two of the wells tied in and on production before breakup. The second well drilled and cased at Steen this winter will be completed next winter as a potential Slave Pt. gas well which can be tied in to the new pipeline at that time. The Company has identified additional drilling locations on its 100% WI lands along the route of the pipeline.

Caribou was successful in purchasing an additional 3,840 acres of 100% WI land in the Steen area at a recent land sale.

Indian Cabins

- At Indian Cabins (100%WI) the Company has drilled and completed one (100% WI) well which was unsuccessful. The well tested water from the Keg River at a lower elevation and encountered poor porosity development at higher elevations. While a disappointing result, the knowledge gained from this well will be utilized in our examination of other geophysical structures in the area.

Cameron Hills

- At Cameron Hills the Company has just completed the tie in of two wells (100% WI) into its extensive northern gas gathering system. The wells and gathering system were acquired as part of the strategic acquisition completed in the fall of 2005. The wells are on stream and are producing at a combined rate of over 500 mcf/d. The gathering system will allow for the tie in of additional wells from the area next winter.

Central Alberta

- In the Legal area of Central Alberta, the Company participated in the drilling of an Ellerslie well (50% WI). The well is currently being completed and encountered approximately 1.5 m of Viking pay.

- The Company also expects to tie in a well (70% WI) at Redwater which was recompleted and hydraulically fractured in an uphole Ellerslie interval. The well has initial gross production test rates of over 200 bopd and 350 mcf/d. The Company expects that the well will be tied in during May when Caribou's pipelining crews return form the Northern area. A second well (100% WI) has been identified for recompletion and fracture stimulation in the Ellerslie in May at the same time as the tie in of first well. Caribou is pursuing down spacing of the Ellerslie in the vicinity of the well (one section) and anticipates drilling up to six infill wells. Caribou is continuing to assess water flood feasibility of the Ellerslie interval which is estimated to contain approximately 5 mmbbls of Initial Oil in Place (OOIP) as defined by geological and 3D seismic control. Successful implementation of water flood projects could result in recoveries of up to 20% of OOIP. The Company has high WI lands (50% -100%) offsetting this play. As well Caribou has recently shot and is interpreting a new 3D seismic survey (7.5 sq. kms.)

- During the quarter, two additional 3D seismic programs have been shot in the Wizard Lake (6.7 sq. kms.) and Westlock (7.8 sq. kms) area. These programs are processed and are currently being interpreted for incorporation into Caribou's summer/fall program.

The Company estimates that under normal expected production operating conditions, wells will commence production at rates of approximately 50% of those measured under initial swab or production test conditions. Consequently, as a result of the above operations, Caribou estimates that it now has over 750 boe/d of new production capability at various stages of tie-in.

Caribou will be presenting at three energy investment symposiums in April and has posted the updated Corporate Presentation which will be presented at the first conference, being held in Toronto on the afternoon of April 4th, on the company's website at www.cariboures.com

Caribou Resources Corp. is an opportunity rich Company that has a significant prospective undeveloped land base of approximately 250,000 net acres focused in two core areas and operates over 85% of its production which is balanced between light oil and natural gas (40%/60%). The Company has approximately 34.8 million basic shares outstanding.

Certain information regarding Caribou in this news release including management's assessment of future plans and operations, production estimates, drilling inventory and wells to be drilled, timing of drilling and tie-in of wells, productive capacity of new wells, capital expenditures and the timing thereof, may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, 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. As a consequence Caribou's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or, if any of them do so, what benefits Caribou will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhausted. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Caribou 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 release.

Natural gas reserves and volumes are converted to barrels of oil equivalent (boe) on the basis of six thousand cubic feet (mcf) per one barrel (bbl) of oil. Boes may be misleading, particularly if used in isolation. The 6:1 boe conversion ratio is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Contact Information

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