Cascadia Resources Inc.

September 06, 2011 08:00 ET

Cascadia Acquires Prospective Oil and Gas Rights

CALGARY, ALBERTA--(Marketwire - Sept. 6, 2011) - Cascadia Resources Inc. ("Cascadia") (TSX VENTURE:CCR) is pleased to announce that it has entered in a Purchase and Sale Agreement and two Farm-In Agreements with various operators to explore and develop resource style oil and gas plays in Alberta and Saskatchewan.

Cascadia purchased a 100% working interest ("w.i.") in two sections in the East Pembina area of Alberta with mineral rights from base of Cardium to basement pursuant to the Purchase and Sale Agreement. A recent crown auction adjacent to the two section parcel sold for $2,200 per hectare from base of Cardium to the base of Mannville.

The first Farm-in Agreement signed with a private company in which Cascadia currently owns 5% of the outstanding common shares of, is in a highly perspective area of Western Saskatchewan, targeting the Bird Bear formation. The terms of the farm-in require Cascadia to drill and core a vertical well in the Bird Bear formation to earn a 70% w.i. in one section and up to 70% in an additional four sections. The core taken from the well will be analyzed and Cascadia will commence a horizontal drill program in the pool if the results are as expected. A location has been surveyed and a drilling rig secured, with plans to commence drilling in September. Cascadia will be the operator of the well and lands. The Bird Bear formation is a developing resource play in west central Saskatchewan.

In the second Farm-in Agreement, Cascadia has farmed in on one and one half (1½) sections of land in the Edson area of Alberta. The terms of the farm-in require Cascadia to drill and complete (in one zone) a vertical test well to earn a 50% w.i. in the lands. The area is characterized by multiple zones, and horizontal drilling is utilized by operators in the area in several of those zones. A location has been surveyed and a drilling rig secured to drill the earning location by the end of October. Internal geological interpretation of the land suggests that a number of horizontal wells could be drilled on this acreage in the Notikiwin and Cardium formations. Cascadia will be the operator of the lands.

The planned drilling program will be financed with existing funds.

For further information, please contact Gordon Bowerman, President and CEO at (403) 262-9177.

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

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