Choice Resources Corp.
TSX VENTURE : CZE

Choice Resources Corp.

August 10, 2006 21:25 ET

Choice Announces Election of Two New Directors and Operations Update

CALGARY, ALBERTA--(CCNMatthews - Aug. 10, 2006) - Choice Resources Corp. (TSX VENTURE:CZE) ("Choice" or the "Corporation") is pleased to announce that Owen C. Pinnell and Fred C. Coles were elected to the Board of Directors of the Corporation at the annual meeting of Choice shareholders held today, together with incumbent directors Gord Harris, Murray Sinclair, Chris Cooper and Bill Elligson.

Mr. Pinnell is the President and Chief Executive Officer of i3 Capital Partners Inc., a private venture capital firm based in Calgary, Alberta. Mr. Coles is President of Menehune Resources Ltd., a private oil and gas company based in Calgary, Alberta. Messrs Pinnell and Coles are both professional engineers and have several years of experience dealing with various public and private companies. Both of them were directors of Deep Resources Ltd. prior to its acquisition by Choice on July 21, 2006.

The Corporation also wishes to extend its appreciation to Mr. Stephen Bruk, who did not stand for re-election this year, for his valuable contribution to the Board over the last four and half years. Mr. Bruk was instrumental in putting together the base set of assets and as such formed to foundation of the Corporation as it exists today. The Corporation wishes him the best in his new endeavors.

Operations Update:

The Corporation is pleased to announce that three successful exploration wells have been drilled on the Deep Resources lands. Testing is underway and the wells will be tied in approximately late September. The wells are on confidential status and the average working interest is 40%.

At Killam the Corporation will be drilling the second horizontal well imminently with a 100% working interest. The first horizontal well, after all regulatory approvals have been obtained is now on stream at a sustained rate of 125 boe/d (working interest is 50%). The 3D seismic is currently in-house and several wells are being planned for this area once the holding application is approved.

At East Central Alberta the Corporation has committed to one well and is in the process of finalizing a 39 section farm-in with the potential to add another 14 sections. A 60 section 3D seismic shoot is planned for the area and is to be shot in September/October (working interest is 50%).

The multi zone well at Kakwa is being completed and tested. The Wabumun zone was determined to have insufficient hydrocarbons to justify a stand alone tie-in. Three other hydrocarbon zones are being tested.

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.

Certain definitions and guidelines have been prepared by the Standing Committee on Reserves Definitions of the CIM (Petroleum Society). Further information is contained in Section 5.4 of Volume 1 of the COGE Handbook (First Edition, June 30, 2002). Readers should consult the COGE Handbook for additional explanation and guidance. Certain other terms used in outlining reserves have the meanings assigned to them in National Instrument 51-101 and accompanying Companion Policy 51-101CP, adopted by the Canadian securities regulatory authorities.

The Corporation has adopted the standard of 6 Mcf: 1 BOE when converting natural gas to BOE. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 BOE is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.








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Contact Information

  • Choice Resources Corp.
    Gordon D. Harris
    President and CEO
    (403) 216-5821
    (403) 216-5828 (FAX)
    Email: gharris@choiceresources.ca
    or
    Choice Resources Corp.
    Steve Austin
    Chief Financial Officer
    (403) 216-5821
    (403) 216-5828 (FAX)
    Email: saustin@choiceresources.ca
    or
    Choice Resources Corp.
    1150, 606 - 4th Street S.W.
    Calgary, Alberta T2P 1T1