Ember Resources Inc.
TSX : EBR

Ember Resources Inc.

October 18, 2005 12:24 ET

Ember Resources Inc. Announces Additions to Management Team and Operations Update

CALGARY, ALBERTA--(CCNMatthews - Oct. 18, 2005) -

Not for distribution to U.S. newswire services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities law.

Ember Resources Inc. (TSX:EBR) today announced additions to its management team, as well as an operational update for its initial quarter of operations.

"We have added three key executives which was an important step in our evolution as a CBM-focused company," said Doug Dafoe, Ember Chairman and CEO. "In addition to completing our management team, our initial quarter of operations has seen Ember establish a leading CBM land position in Alberta and complete an equity financing. With these elements in place, we are now well-positioned to advance development of our projects in three core areas."

New Members of Management

The three new members of Ember's management team are as follows:

Bruce Ryan, CA, CFA, Vice President, Finance and Chief Financial Officer, has been involved in the North American oil and gas industry since 1985. His career has included positions in senior finance, with a venture capital firm, as a chief financial officer and as a corporate secretary and director of a number of TSX-listed companies.

Thomas Zuorro, Vice President, Land, has 27 years of land and related business development
experience in the Canadian oil and gas industry. As a professional landman, he has worked with a
number of public and private companies, most recently with Thunder Energy Inc.

Ken Ronaghan, P. Eng., Vice President, Engineering, has 20 years experience in exploitation, evaluations and operations in the Canadian oil and gas industry. He has worked with a number of public oil and gas companies, most recently with Thunder Energy Inc. and Cypress Energy Inc.

Full bios are available at www.emberresources.com.

Operations

Since start-up in July 2005, Ember has emerged as a specialized coal bed methane (CBM) company with an excellent asset base. Ember owns a significant 300,000 acre CBM-dedicated land position, and approximately 70 producing CBM gas wells. The current estimate of gas in place exceeds 1.0 tcf. The Company is currently producing 2.5 mmcf/d. The Company concluded a $50 million equity financing in August, establishing sufficient funding to advance development of its three core areas all located in Alberta: Manola, Rosalind, and Fenn/Big Valley.

Manola - Demonstration phase

The Manola area is in the demonstration phase with the goal of providing production and reservoir data to determine the economic parameters for Mannville CBM development. Ember currently has four vertical CBM wells (4.0 net) producing from two Mannville coal seams. The Company is currently drilling six horizontal wells (6.0 net) prior to year-end 2005 as part of a demonstration phase program. The wells are being drilled to a depth of approximately 925 metres vertical and 1,000 metres horizontally. The expected cost to Ember to drill, complete and equip is $7 million. Ember's peers, Nexen and Trident, have previously announced commercial projects on nearby acreage.

Rosalind - Demonstration phase

Rosalind is another Mannville CBM project in the demonstration phase where production and reservoir data is being acquired to determine economic parameters for development. Ember has nine producing CBM wells (4.5 net) drilled to a depth of 1,000 metres. In September the Company participated, as a 50% partner, in two horizontal wells which are currently being completed with production expected to begin in the fourth quarter 2005. The first well, a single-leg horizontal, was drilled and completed for $1 million ($0.5 million net). The second well, a dual-leg horizontal, was drilled and completed at a cost of $1.6 million ($0.8 million net). The Company will be evaluating the results of this two-well program to determine further development plans.

Fenn/Big Valley - Large-scale development underway

Ember is operating a large Horseshoe Canyon CBM program at Fenn/Big Valley, which will see development continuing into 2006/07. Drilling is targeting CBM production from shallow Horseshoe Canyon coals (150 to 350 metres) and Ember currently has an approximate 50 producing wells (50 net).

In the third quarter, Ember participated as a JV partner with Thunder Energy Trust which resulted in five new Horseshoe Canyon wells (5.0 net). Ember also re-completed four existing wells (4.0 net), which added approximately 120 mcf/d of incremental production, a 50% improvement over previous production levels.

Ember has two drilling rigs working continuously on a 32-well (32 net) drilling program which is scheduled to conclude in late November. The total capital commitment is expected to be nearly $10 million ($7 million net). The Company plans to continue a development program in 2006/2007, and has acreage permitting up to an additional 150 wells (140 net). Other development options exist in bypassed zones, or abandoned wells with CBM potential.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional information on these and other factors that could affect the Company's operations or financial results are included in the Company's reports on file with Canadian securities regulatory authorities.

Ember Resources Inc. is a resource company specializing in coal bed methane (CBM) with extensive land and resource holdings in Alberta, Canada. Ember's shares are traded on the Toronto Stock Exchange under the trading symbol "EBR"

Contact Information

  • Ember Resources Inc.
    Mr. Douglas A. Dafoe
    Chairman & CEO
    (403) 270-0803
    or
    Ember Resources Inc.
    Mr. Terry S. Meek
    President & COO
    (403) 270-0803
    (403) 270-2850 (FAX)
    Website: www.emberresources.com