Guardian Exploration Inc.

Guardian Exploration Inc.

January 23, 2008 09:20 ET

Guardian Exploration Inc. (TSXV:GX) Announces Operational Update

CALGARY, ALBERTA--(Marketwire - Jan. 23, 2008) - Guardian Exploration Inc. ("Guardian" or the "Company") (TSX VENTURE:GX), Guardian announces it has entered into an agreement with one of Canada's more successful junior oil and gas companies to participate in the drilling of light oil prospects in the Girouxville area of Alberta. Guardian and the operator, have recently drilled and tested a new discovery at rates as high as 360 bbls/d of light 44 API sweet oil, (under the Farm-in and Participation Agreement, Guardian paid 80% to earn a 50% working interest). The well has no indications of water on logs or initial test. The new discovery is currently shut-in for pressure buildup. The well will be placed on production at EUB-restricted rates of approximately 125 barrels per day by month-end. The operator currently anticipates having production restrictions removed from the well via application for Good Production Practice (GPP) in the 2nd Quarter of 2008. The Company is now preparing to drill a similar prospect (Guardian will again pay 80% for 55% working interest on the rolling option wells under the Farm-in and Participation Agreement going forward), and anticipates to commence drilling before the end of February. It is anticipated that this well, and subsequent wells in Girouxville will qualify for new pool royalty holidays under the new Alberta royalty framework.

Graydon Kowal, President and Chief Executive Officer of Guardian, commented, "I am extremely pleased with this Farm-in and Participation Agreement under which Guardian has very good terms going forward. Guardian has identified as many as 14 prospects on the farm-in acreage, all delineated by three dimensional seismic, and our operating partner has an impressive system of drilling these wells with an exceptional success rate".

Guardian is a Calgary-based corporation engaged in the acquisition, exploration and development of resource properties. Common shares of the company trade on the TSX Venture Exchange under the trading symbol "GX".

The term barrels of oil equivalent ("BOE") may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All BOE conversions herein are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

Investors are cautioned that the preceding statements of the Corporation may include certain estimates, assumptions and other forward-looking information. The actual future performance, developments and/or results of the Corporation may differ materially from any or all of the forward-looking statements, which include current expectations, estimates and projections, in all or part attributable to general economic conditions and other risks, uncertainties and circumstances partly or totally outside the control of the Corporation, including natural gas/oil prices, reserve estimates, drilling risks, future production of gas and oil, rates of inflation, changes in future costs and expenses related to the activities involving the exploration, development and production of gas and oil hedging, financing availability and other risks related to financial activities. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

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

Contact Information

  • Guardian Exploration Inc.
    Graydon Kowal
    President and CEO
    (403) 232-1748