Grand Banks Energy Corporation
TSX VENTURE : GBE

Grand Banks Energy Corporation

November 08, 2005 17:18 ET

Grand Banks Announces 44,000 Acre Saskatchewan Farm-In

CALGARY, ALBERTA--(CCNMatthews - Nov. 8, 2005) -

NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE UNITED STATES.

Mr. Edward C. McFeely, Chairman, President and C.E.O. of Grand Banks Energy Corporation (TSX VENTURE:GBE) reports that Grand Banks Energy Corporation and its partners, Ranger Canyon Energy Inc. and Xtra Oil & Gas Ltd., have entered into a participation agreement on a large-scale farm-in deal with a major oil and gas company covering over 44,000 acres of lands in southeastern Saskatchewan. Grand Banks will participate for a 50% interest in the deal and will operate.

Under the terms of the farm-in, Grand Banks and its partners have the right to drill test wells on selected exploration blocks to earn a 100% working interest in the spacing unit before payout and a 66.67% working interest after payout. Each test well also earns a 66.67% interest in 1 to 4 sections of additional lands depending on depth drilled. Additional lands may be earned through the drilling of rolling option wells and additional test wells.

Grand Banks and its partners are nearing completion of the evaluation phase and expect to commence drilling by March 1, 2006. The term of the agreement is to December 31, 2008.

The lands that can be earned under this agreement are located in southeastern Saskatchewan. This region has year-round access and good availability to infrastructure and services. The lands are prospective for light oil, with numerous oil fields having been discovered and produced within the area since the 1950's. A significant portion of the acreage lies within the Bakken fairway with additional potential for multi-zone Mississippian and Red River oil targets.

On behalf of the Board,

Grand Banks Energy Corporation

"E.C. (Ted) McFeely"

E.C. (Ted) McFeely

Chairman, President and Chief Executive Officer

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

Contact Information

  • Grand Banks Energy Corporation
    E.C. (Ted) McFeely
    Chairman, President and Chief Executive Officer
    (403) 262-8666
    (403) 262-8796 (FAX)
    or
    Grand Banks Energy Corporation
    1600, 444 - 5th Avenue S.W.
    Calgary, Alberta T2P 2T8