Glamis Resources Ltd.
TSX VENTURE : GLM.A
TSX VENTURE : GLM.B

Glamis Resources Ltd.

November 01, 2006 19:09 ET

Glamis Resources Ltd. Operations Update

CALGARY, ALBERTA--(CCNMatthews - Nov. 1, 2006) -

Not for dissemination in the United States or to U.S. persons

Glamis Resources Ltd. ("Glamis") (TSX VENTURE:GLM.A) (TSX VENTURE:GLM.B) is pleased to provide an operations and corporate update for the first 6 months of operations following closing of the company's April 20, 2006 initial public offering.

Glamis' highlights include:

- drilled and cased 3 exploratory wells

- drilling 1 development location

- licensing 3 exploratory locations

- successfully purchased 2,272 net acres at crown land sales

- tied up 7,840 gross acres of farmin lands

- total of approximately 35,000 net undeveloped acres

- completed turnarounds at Taber and Conrad with production averaging 160 BOPD

Glamis' detailed operations update as follows:

Central Alberta:

The Glamis et al Hanna 11-18- 30 -14W4M exploratory well targeting the lower Mannville has been drilled and cased. Completion operations on the lower Mannville have been delayed due to wet conditions and will proceed weather permitting. This well was drilled on lands acquired by Glamis (60% WI) at a recent crown land sale.

The Glamis et al Michichi 5-4-31-17W4M exploratory well targeting the Banff formation was drilled and cased however the Banff section proved to be uneconomic. Approximately 8 square kilometers of 3D seismic have been purchased to better define the Banff prospect.

West Central Alberta

The Glamis Whitecourt 6- 30 -60-10W5M exploratory well targeting the Viking Formation has been drilled and cased. The well encountered the targeted sands and has been completed and tested. The Viking flow tested approximately 40 boepd (20 boepd net) comprised of natural gas and associated liquids. Tie in options, as well as potential follow up drilling on the earned lands, are being evaluated.

Licensing is proceeding as expected on Glamis' 16-15-49-8W5M Pembina Nisku prospect. Glamis has teamed up with 2 industry partners for a 25% working interest before payout. The well is expected to be spud in the 3rd quarter of 2007. This prospect was identified on a 70 square kilometer 3D seismic data set. West Pembina is a prolific area for oil and gas production from the Nisku formation, with surrounding Nisku wells capable of producing in excess of 1,000 boepd.

Southern Alberta

The Glamis Conrad 16-22-6-15W4M Sawtooth development location was spud on October 31, 2006. Glamis anticipates the 16-22 location to be the first of a number of development locations at Conrad. Glamis has submitted a holding application to the EUB and is awaiting approval to down-space the pool similar to analogous Sawtooth pools in the area.

Approximately 5 km. south of the 16-22 well, Glamis has acquired 3 lines of 2D seismic over its existing production in the main Conrad pool. This pool has limited seismic coverage and, in Glamis' technical interpretation, contains additional upside through future development drilling.

Peace River Arch

Glamis has entered into a farmin agreement with an industry major to drill a Kiskatinaw test well in the Boundary Lake (AB) area. The farmin terms grant the farmor, who has elected to participate for a 25% working interest, a 15% non-convertible override. This is a prolific area for Kiskatinaw gas production and was identified using extensive seismic coverage over the prospect. Glamis may seek an additional 25% working interest partner on this prospect. The location is in close proximity to existing infrastructure and facilities with excess capacity. This well is currently being licensed and should spud by early to mid December.

S.E. Saskatchewan

Glamis has entered into a farmin agreement on an internally generated prospect targeting the Frobisher Formation. Glamis has agreed to pay 100% of the costs before payout to earn a 70% working interest after payout in the lands. The well is currently being licensed and should be spud within a month. If successful, a number of development locations will be required to fully exploit this prospect.

Glamis Resources Ltd. is a junior oil and gas company formed to generate and develop its own prospects, acquire oil and gas properties and participate with joint venture partners in oil and gas exploration and development in the Western Canadian Sedimentary Basin. The company's Class A Shares and Class B Shares trade on the TSX Venture exchange under the symbols GLM.A and GLM.B. The company currently has 12,200,000 Class A shares and 922,500 Class B shares outstanding.

FORWARD LOOKING STATEMENTS: Certain information regarding Glamis in this news release including management's assessment of future plans and operations, timing of drilling and tie-in of wells, productive capacity of the new wells and productive capacity from different wells, expected production rates, drilling success rates, dates of commencement of production, 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, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhausted. Additional information on these and other factors that could effect Glamis' 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). Furthermore, the forward looking statements contained in this news release are made as at the date of this news release and Glamis 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.

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

Contact Information

  • Glamis Resources Ltd.
    Mr. Brent McKercher
    President & Chief Executive Officer
    (403) 265-7200 ext. 222
    (403) 265-7150 (FAX)
    or
    Glamis Resources Ltd.
    Mr. Darwin Little
    Vice President, Finance & Chief Financial Officer
    (403) 265-7200 ext. 223
    (403) 265-7150 (FAX)