Churchill Energy Inc.
TSX VENTURE : CEI

Churchill Energy Inc.

March 14, 2007 17:47 ET

Churchill Provides Smoky Completion Update

CALGARY, ALBERTA--(CCNMatthews - March 14, 2007) - Further to Churchill's press release dated January 19, 2007, Churchill Energy Inc. (TSX VENTURE:CEI) ("Churchill" or the "Company") has completed fracture stimulations on six Cretaceous zones on the 1-16-59-2W6M (0.85 net) well in Smoky. The Company got strong initial fluid recovery during short flow back periods with good indications of commercial natural gas from the well. The initial measured reservoir pressure from the Fahler/Bluesky package was 1,000 psi higher than expected.

Churchill was forced to suspend operations on the 1-16 well as road bans were put into effect early due to the unseasonably warm weather. The Company was in the process of drilling out the composite bridge plugs before flowing the well back to get a test rate from the completed zones. The completed zones would then be commingled for production. Operations will only resume after July 15th as the caribou calving season runs from April 15 to July 15 and no operations are allowed during this period. Churchill will proceed with the completion and tie-in of the 1-16 well as soon as weather conditions permit after the end of the caribou calving season on July 15th.

The previously shut-in 13-10-59-2W6M well (0.85 net) was placed back on production on February 26 at an initial rate of 900 mcf/d and is expected to decline to approximately 500 mcf/d. In addition a well at 8-17-59-2W6 (0.125 net) has been tied-in and commenced production March 1st.

Current production is approximately 500 boe/d and the Company has 100 boe/d behind pipe which it expects to have on production in the second quarter. The 100 boe/d behind pipe does not include any production from the 1-16 well.

Churchill is a Calgary-based junior oil and natural gas company with operations in Alberta and Saskatchewan. The common shares of Churchill are listed on the TSX Venture Exchange and trade under the symbol "CEI".

Forward Looking Statements: Certain information regarding Churchill in this news release including management's assessment of future plans and operations, production estimates, drilling inventory and wells to be drilled, timing of drilling and tie-in of wells, productive capacity of new wells, capital expenditures and the timing thereof, may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services,, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence Churchill's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or, if any of them do so, what benefits Churchill will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Churchill's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), at Churchill's website (www.churchillenergy.ca). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Churchill does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl 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 does not accept responsibility for the adequacy or accuracy of this release.

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