Choice Resources Corp.
TSX VENTURE : CZE

Choice Resources Corp.

November 08, 2006 08:00 ET

Choice Announces Operations Update

CALGARY, ALBERTA--(CCNMatthews - Nov. 8, 2006) - Choice Resources Corp. ("Choice")(TSX VENTURE:CZE) is pleased to announce an update of its operations from that given in the latest quarterly update.

Choice has drilled 2 horizontal wells to date on its Killam property. Both of these wells are now on stream and producing on a gross basis of over 100 boe/d per well. The wells have not yet reached full production potential. The wells produce oil at 24 degrees API gravity and solution gas is conserved and sold. Choice has an average working interest of 75% in these two wells. During the past summer Choice acquired land in the area and shot a 3D survey over 5 sections of land of which Choice owns 3.5 sections. Current plans call for the drilling of up to 10 wells over the next few months, including 4 additional well-bores over the next 2 to 3 weeks.

At Whitecourt, Choice has 45 sections of land with an average working interest of 40%. Four successful wells have been drilled in 2006. The first well to come off confidential status is the 12-10 well has 11 meters of pay with 22% porosity. This well has been producing at a stabilized gross rate of 1.3 mmscf/d (217 boe/d) since February 2006. The plans are to drill up to 6 more wells in the area this winter. Also in the area Choice as operator will spud a well this week on the Alexis treaty lands. Choice has a 50% working interest in this well. Several zones are prospective in the area.

At Samson, the Company has completed its 60 section 3D seismic interpretation and has committed to 3 wells. The first two wells will spud in early December, with a third well to be decided over the next two weeks. Choice has an option to earn its interest in 39 sections of land. Choice has a 25% interest in this play.

At Kakwa, a fracture stimulation and test is planned by the end of November. Choice's working interest is 40%.

At Pincher Creek, Choice is in the process of licencing 3 wells for Mississipian and Cretaceous targets. Choice has a 75% interest in the Pincher Creek Unit.

The Company is experiencing much stronger gas prices as we move into the winter. These prices have improved from a low of less than $3.00/mcf to currently more than $7/mcf. Current production is over 1,900 boe/d and given the projected drilling program, the Company expects to be over 2,100 boe/d by January. It is anticipated that oil production will represent 25 to 30% of total production by late spring.

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. The Corporation does not undertake any obligation to publicly update or revise any forward-looking statements. 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.

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 Harris
    President and CEO
    (403) 216-5821
    (403) 216-5828 (FAX)
    or
    Choice Resources Corp.
    Steve Austin
    VP Finance and CFO
    (403) 216-5821
    (403) 216-5828 (FAX)
    Email: info@choiceresources.ca