Cloudbreak Resources Ltd.

Cloudbreak Resources Ltd.

November 15, 2010 09:15 ET

Cloudbreak Resources Ltd. Identifies New Oil Well Drill Targets

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 15, 2010) - Cloudbreak Resources Ltd. (TSX VENTURE:CDB)(FRANKFURT:C6K) (the "Company") is pleased to announce further results from the ongoing geological studies of its oil properties in Saskatchewan and Manitoba.

The independent studies are being conducted by Chapman Petroleum Engineering Ltd. to site drill holes on previously identified targets. With the studies now 40% complete, Chapman has provided the following updates on Parcels J3, J4 and J9 that further confirm the value of the Company's assets (see news release July 10, 2010). Positive results for J5 were reported in the Company's October 14, 2010 news release.

Parcel J9

Chapman's in-depth geological mapping shows that a prolific Lower Mannville channel oil play extends across Parcel J9 from an adjoining oil pool. Adjacent producing wells are located only 95 and 130 m from Cloudbreak's acreage, and have produced over 140,000 and 95,000 bbl respectively from a thick sand that is indicated to extend under the J9 parcel. Subsequent economic evaluation and risk analysis confirms very favorable economics for this parcel, and seismic evaluation is planned to site drill holes.

Parcel J3

Chapman's detailed geological review in preparation for drilling has identified positive indicators of a reef-like mound under Parcel J3. The presence of these structures in the immediate area is further confirmed by a 400 bpd oil well located 600 m downdip from Parcel J3. Similar structures are known to be 800 to 1,600 m across, have a domal or tabular shape, and are very prolific producers. They typically occur in clusters, and have also been discovered around the rim of the Williston Basin in Saskatchewan, Manitoba, Montana, and North Dakota. The Chapman study confirms that Parcel J3 has indicators for this kind of structure, providing the makings for a significant new discovery. A geophysicist has been engaged by Chapman on behalf of the Company, in preparation for drilling.

Parcel J4

Parcel J4 is located between two recently discovered oil pools with individual wells having produced up to 103,000 bbl to date. The Chapman study shows a structurally high trend running under the Company acreage linking both productive oil pools. The reservoir unit beneath the Company's land is mapped with a thickness of over 20 m, the same as seen in both adjacent oil pools. Chapman's economic evaluation and risk analysis confirms very favorable economic parameters for this parcel, and seismic evaluation is planned in preparation for siting specific drill holes.

All of the prospects evaluated to date have met or exceeded the Company's expectations. The review is ongoing in preparation for drilling.

The Company looks forward to reporting additional news on multiple fronts in the immediate future.


Peter Bryant, President & Director

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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