Golden Cariboo Resources Ltd.

September 01, 2005 12:45 ET

Golden Cariboo Resources Ltd.: Completion and Production Testing to Begin at the Sarcee Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 1, 2005) - The Board of Directors of Golden Cariboo Resources Ltd. (TSX VENTURE:GCC) (the "Company") is pleased to announce that the 12-13 Mississippian test well at the Sarcee Project has been successfully drilled, logged and cased to a total depth of approximately 3,300 meters subsurface, and is currently waiting completion and production testing.

The Test Well is on trend but in a separate accumulation to Shell Canada Limited's "Shell Sarcee No. 1" well (12-6-23-3W5) drilled in 1953 which has produced 92.4 BCF (billion cubic feet) to date and is still producing approximately 1.5 MMCF (million cubic feet) per day. The production is natural gas from the Mississippian-Turner Valley/Rundle formation.

In the adjacent section, Shell Canada Limited's "Shell 11-31-22-3W5" well was drilled in 1958 and put on production in 1961. Tests varied from 17 MMCF per day to 51 MMCF per day depending on the interval tested and choke size used. This well has produced 86.7 BCF to date and is still producing approximately 1.5 MMCF per day.

As stipulated in the participation agreement, the company has paid 10 per cent of the drilling costs to earn a 5-per-cent working interest in the 12-13 Mississippian test well section lands. In addition, the company has the right to earn a further 5-per-cent working interest in contiguous lands by paying 5 per cent of the drilling costs for three additional wells. Regulations restrict the number of wells that can be drilled, to one well per section.

Regionally, the Sarcee project is located within the Tsuu T'ina First Nation Lands, which are on trend with numerous producing fields encompassing several prospective horizons immediately west of the city of Calgary, Alberta. Productive zones around and within the Tsuu T'ina Lands range in age from the Devonian Crossfield Member of the Wabamun Formation to the Late Cretaceous coals of the Horseshoe Canyon Formation. Probably the most significant reserves locally are found within the thrusted Mississippian carbonates of the Turner Valley/Rundle Group.

Chapman Petroleum Engineering Ltd., qualified under National Instrument 51-101, has reviewed and approved the contents of this news release.

On Behalf of the Board of Directors

J. Frank Callaghan, President and CEO

This news release contains forward-looking statements regarding the timing and content of upcoming programs. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Golden Cariboo Resources Ltd.
    J. Frank Callaghan
    President and CEO
    (604) 669-6463 or Toll Free: 1-800-663-9688
    (604) 669-3041 (FAX)