Choice Resources Corp.
TSX VENTURE : CZE

Choice Resources Corp.

October 25, 2005 12:49 ET

Choice Announces Operations Update on Pincher Creek Development Well

CALGARY, ALBERTA--(CCNMatthews - Oct. 25, 2005) - Choice Resources Corp. (TSX VENTURE:CZE) ("Choice") as operator is pleased to announce that drilling of the previously discussed horizontal well at Pincher Creek has been completed. The well was drilled approximately 600 meters horizontally and is currently being completed for flow testing after encountering commercial quantities of natural gas. The well was flowing while drilling but any comments on the sustained deliverability of the well are premature at this time due to changing bottom hole conditions while drilling.

The next phase of the operation involves setting a packer and production tubing, then producing the well for clean up operations. Following this clean up operation the well will likely be selectively acidized, as would be common in limestone reservoirs. The well will then be flowed for several days followed by a pressure build to determine long-term deliverability and reserves.

The testing of the well will be through the Choice flow-line already on site and it is expected that more information will be available by the end of November. All production from the test phase, as was done in the drilling phase will be conserved and sold.

Choice has a capital interest in this well of 19% with a 30% working interest before payout of the well costs and 52.5% after payout of the well capital. Choice will also receive a 10% gross over-riding royalty on 45% of production before payout reverting to the described working interest after payout. Other parties in the well are Blue Parrot Energy Inc. (BPA- TSXV) with a 5% working interest before payout, Running Fox Resource Corp. (RUN - TSXV) with a 30% working interest before payout and two private corporations with a combined 46% initial interest.

The Pincher Creek area is a focus area for both exploitation and exploration. Further drilling, seismic and re-completion work will be done in conjunction with partner discussions upon completion of the current well.

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