Choice Resources Corp.
TSX VENTURE : CZE

Choice Resources Corp.

August 18, 2005 18:27 ET

Choice Announces Final Interests in Pincher Creek

CALGARY, ALBERTA--(CCNMatthews - Aug. 18, 2005) - Choice Resources Corp. (TSX VENTURE:CZE) ("Choice") is pleased to confirm the interests in the horizontal development well at Pincher Creek and to announce the related disposition of a 25% interest in the Pincher Creek Unit.

Choice will have a capital interest in this well of 19% with a 30% working interest before payout of the well costs and a 52.5% interest after payout of the well capital. Choice will also receive a 10% gross overriding royalty on 45% of production before payout reverting to the described working interest after payout. This well is expected to reach total depth in 4 to 5 weeks. The expected cost to drill this well is approximately $6.5 million at a total vertical depth of 3,900 metres. Choice is expecting to drill an additional 500 to 600 meters horizontally.

In addition, the Parties to the farm-out have the option to participate on further development and exploration in the remainder of the field under similar terms and conditions.

Choice, as part of the farmout, is disposing of 25% of the Pincher Creek Unit for $6.055 million to a private company. This disposition includes all land, wells and P&NG rights and represents approximately 100 boepd net to Choice. The funds will be used for general corporate purposes and to reduce bank debt. The effective date of the transaction is September 1, 2005.

The Pincher Creek area is a focus area for both exploitation and exploration. Choice, by taking in partners, will be able to accelerate the exploitation of this property with technically and financially sound partners.



Gordon D. Harris
President and CEO


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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

Contact Information

  • Choice Resources Corp.
    Gordon D. Harris
    President and CEO
    (403) 216-5821
    or
    Choice Resources Corp.
    Steve Austin
    (403) 216-5821