Chirripo Resources Inc.

Chirripo Resources Inc.

August 26, 2005 13:20 ET

Chirripo Resources Inc.: Update on Activities and Strategic Alternatives Process

CALGARY, ALBERTA--(CCNMatthews - Aug. 26, 2005) - Chirripo Resources Inc. (TSX VENTURE:CHO) ("Chirripo") is pleased to update shareholders on its operational activities and strategic alternatives process.

In regards to the corporate strategic alternate process during June and early July, no acceptable offers were tendered. The Management and the Board of Directors continue with the process of identifying and evaluating potential strategic alternatives as a secondary priority. The Company is continuing to execute its business plan for 2005.

Chirripo has installed a 200hp booster compressor at 6-35-79-9W6M to prevent the formation of hydrates from the 8-28-80-9W6M Bilawchuk well. Wet weather and regulatory permitting delayed this installation by about seven weeks. The well has been flowing intermittently since August 19 at a rate of 750 mcf/d. The flow rate is expected to stabilize at 900 mcf/d once the compressor is fully tuned up to the ideal flow rate from the well. Chirripo has a 50% working interest in this well.

The Company has licensed a well in Tangent in the Peace River Arch area to the Belloy Formation. The well will target gas in three Mannville sandstones and two Montney sandstones and is expected to be drilled prior to the end of the third quarter. The Company is in the process of licensing a well in McLean's Creek offsetting an older well and using 3D seismic to gain structure. The well will target Gilwood oil and Gething gas and is expected to be drilled before the end of October.

Chirripo was successful in acquiring two adjacent half sections with all P&NG rights in the Shadow area near Chirripo's Iroquois/McLean's Creek property. The acquired land is prospective for gas and oil.

The Company has placed back on production two Bear Canyon oil wells located at 2-1-83-12W6M and 14-35-82-12W6M. Total Company estimated field production is currently 325 boe/d, split 39% oil and 61% gas.

Shares outstanding: 11,248,768

This news release has been neither approved nor disapproved by the TSX Venture Exchange.

Contact Information

  • Chirripo Resources Inc.
    Issa Abu-Zahra
    President and Chief Executive Officer
    (403) 261-5858