Echo Energy Canada Inc.

Echo Energy Canada Inc.

March 20, 2007 14:15 ET

Echo Energy Secures Three New Drilling Licenses

LONDON, ONTARIO--(CCNMatthews - March 20, 2007) - Echo Energy Canada Inc. (TSX VENTURE:EEI), a revenue producing natural gas and oil exploration company is pleased to announce that it has secured three new drilling licenses. The new drilling licenses will target the lucrative Thorold Grimsby Zone which has produced in the past, production of approximately 1,000,000 cubic feet per day.

As reported in the company's last update on February 5, 2007, Echo Energy Canada has an extensive gathering, compression, and sales line system to allow production from wells within the company's land position. This system was expanded during 2006 to tie-in 2 additional Thorold gas wells, and has ample additional capacity to handle all gas expected from ongoing Thorold and deeper drilling. These systems have allowed the company to follow its plan of adding additional wells to the system as is the case with these three new drilling licenses.

"We are extremely pleased with the progress of the Thorold Grimsby Zone, in fact, a few of the wells show signs of dramatically increased flow rates many months after the start of production," stated Mr. Gary Conn, President & CEO of Echo Energy. "These additional drill programs will further allow the company to develop the Thorold Wells and increase production in the future."

The increased flow rates are caused by the slow removal of the fracture treatment fluids from the wells. As the fluids are removed, the gas flow restrictions are also eased resulting in increased flow rates. The company has seen this in at least six of its wells to date.

Investors are also asked to visit the Echo Energy IR Hub at where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.

About Echo Energy Canada Inc.

Echo Energy Canada Inc. is a publicly traded energy company with revenue producing natural gas production operations near Port Burwell Ontario, Canada on the shores of Lake Erie. Echo Energy has a significant equity interest in Echo Power Generation Inc., which is moving forward with pre-construction activities to develop wind energy projects in Ontario. Total shares outstanding: 52,779,515.

This News Release may include certain "forward-looking statements" that involve risks and uncertainties. Actual results may differ materially from results indicated in any forward-looking statements. The company cautions that, among other things, in view of the rapid changes in communications markets and technologies, and other risks including the cost and market acceptance of the company's new products, the level of individual customer procurements and competitive product offerings and pricing, and general economic circumstances, the company's business prospects may be materially different from forward-looking statements made by the company.

Certain statements in this press release are forward-looking statements including specifically forward-looking statements relating to management's approach to operations, estimates of future sales, production and deliveries, business plans for drilling and development, estimated amounts and timing of capital expenditures, anticipated operating costs, royalty rates, cash flows, transportation plans and capacity, anticipated access to infrastructure or other expectations, beliefs, plans, goals, objectives, assumptions and statements about future events or performance. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable by Echo at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil and gas prices; the results of exploration and development drilling and related activities; the uncertainty of estimates and projections relating to productions, costs and expenses; uncertainties as to the availability and cost of financing; fluctuations in currency exchange rates; the imprecision in reserve estimates; risks associated with oil and gas operations, such as operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the weather in the Company's area of operations; the ability of suppliers to meet commitments; changes in environmental and other regulations; actions by governmental authorities including changes in laws and increases in taxes; decisions or approvals of administrative tribunals; the effect of acts of, or actions against international terrorism; and other factors, many of which are beyond the control of Echo. There is no representation by Echo that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information