Choice Resources Corp.

Choice Resources Corp.

February 25, 2005 09:00 ET

Choice Announces Activity Update


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CHOICE RESOURCES CORP.

TSX VENTURE SYMBOL: CZE

FEBRUARY 25, 2005 - 09:00 ET

Choice Announces Activity Update

CALGARY, ALBERTA--(CCNMatthews - Feb. 25, 2005) - Choice Resources Corp.
(TSX VENTURE:CZE): Gord Harris, President and CEO reports that the
Corporation continues to show increasing activity as a result of the
exploration and exploitation prospects generated over the past 6 months
as well as the selective acquisitions the Corporation has pursued.

Exploitation:

At Snipe Lake, the 3-28 well will be on stream by March 1, 2005 with an
expected deliverability of 2 mmcf/d (330 boe/d) and a minimum of 25%
working interest.

At Pincher Creek a well licence has been approved and the Corporation
continues to pursue appropriate business partners to participate in this
well. This is planned as a 600 meter horizontal well in close proximity
to a well which has produced 11 Bcf of raw gas.

In the Viking area the Corporation drilled three wells on a farm-in
basis as previously announced. All wells were cased and are now being
tied in to pipelines and should be on stream by March 1, 2005. The
expected net production is 300 mcf/d (50 boe/d). In addition, the
Corporation drilled a coal bed methane well which was cored for reserve
estimating purposes. The results of the core testing indicated a
resource base of 1.4 Bcf per section of gas in place. This is supported
by existing production from wells that have been on stream for over ten
months. An infill program covering two sections with up to four wells
per section is being planned for this area and expected to be drilled by
July 2005. The rights to ten sections of land have been acquired in this
area.

In the Bow Island area the Corporation has been producing gas at 160
mcf/day (26 boe/d) from a new pool. Seismic is being acquired in the
area to determine the infill drilling potential of this discovery and to
determine how much up dip a well can be drilled to increase
productivity. The current well has an up-hole gas zone which will be
re-completed.

Exploration:

In the exploration areas there are 12 prospects in the queue. In the
Snipe Lake area one well has been spudded with a 22% working interest.
Two other exploratory wells have been tested with a 49% working
interest. One well that tested at 750 mcf/d (125 boe/d) will be tied in
by the end of March and the other well continues on test to determine
the magnitude of the play type and the potential size of the reservoir.

In the Bow Island area the Corporation has received a well licence to
drill another exploratory well. This well will be drilled by March 31,
2005. Six sections of land have been optioned in this area for
exploration.

At Goose River an exploration well was drilled last winter but left
untested and currently a service rig is on site to test a potential
hydrocarbon zone. Results will be available in late March.

At Ponoka the Corporation is participating in a Leduc test on the basis
of interpretation from 3 D seismic. This well will be drilled to
contract depth by March 31 with a final working interest of 20%.

At Wallace a well licence has been received and the well is expected to
spud by the first week of March, weather permitting. The Corporation
will be taking a minimum of 45% interest in the well.

As a follow up to the recently concluded Participation Agreements with
Vecta Energy Corp., the seismic has been acquired and processed with the
interpretation to be completed by mid-March prior to committing to a
well. As previously announced the Corporation shot two seismic programs
and has the option to drill up to five wells on an option basis in 13
sections of land in central Alberta. The option wells are on 11 sections
in the Chambers area, with Choice having an option to take 25% of the
well, and near Olds covering two sections where Choice will have the
option to take 33% of the well. Choice will earn an average of 51% of
the original participating interest after payout of the wells.

Management is very pleased with the performance of the exploration
program. The prospects in inventory at this point in time are at a
modest depth of less than 2,000 meters in general with a significant
working interest making the impact material to the Corporation. On the
exploitation side of the business, with the current wells being put on
stream, it is expected that production will be approximately 1,400
boe/d. Additional results from exploration and at Pincher Creek will add
to the growth prospects during 2005.

CAUTION REGARDING FORWARD LOOKING STATEMENTS

Certain statements contained herein constitute forward-looking
statements. The use of any of the words "anticipate", "continue",
"estimate", "expect", "may", "will", "project", "should", "believe", and
similar expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking statements.
The Corporation believes the expectations reflected in those
forward-looking statements are reasonable but no assurance can be given
that these expectations will prove to be correct and such
forward-looking statements included in this report should not be unduly
relied upon. These statements speak only as of the date of this
presentation. The Corporation does not undertake any obligation to
publicly update or revise any forward-looking statements.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Choice Resources Corp.
    Gord Harris
    CEO
    (403) 216-5821
    or
    Choice Resources Corp.
    Steve Austin
    CFO
    (403) 216-5821
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the contents of this news
    release.