SOURCE: Homeland Resources Ltd.

March 18, 2011 16:10 ET

Homeland Resources Anticipates Up to 50 New Oil and Gas Drill Locations From Liberty Ridge Seismic Shoot

ALBUQUERQUE, NM--(Marketwire - March 18, 2011) - Homeland Resources Ltd. (OTCQB: HMLA) (PINKSHEETS: HMLA) is pleased to report that a large-scale 3D seismic program has commenced on 83,043 acres (130 square miles) at the Liberty Ridge Project in southern Oklahoma. Homeland anticipates that positive results from this seismic data could result in upwards of 50 new drill locations for the Company and its partners.

Processing and digital modelling of data received from the program is already underway. Initial evaluation indicates the program has been successful and the Company reports that potential site assessments look very promising. At this time, 15 percent of the seismic shoot has been completed with the remainder expected to be finished within the next few months. 

The overall scale of the Liberty Ridge Project is exceptionally large (83,043 acres or 130 square miles) and there is long a history of significant hydrocarbon production across the region. The strategic purpose of the 3D seismic program is to locate numerous new oil fields across the entire land position and fully exploit the proprietary data to develop the new discoveries.

The company entered into the project based on numerous factors. These include, but are not limited to: (1) the positive results of previous 2-D seismic work on the field which indicate 26 structural leads, (2) the overwhelming success of analogous and neighboring 6 fields in the immediate area which have produced over 13,000,000 barrels of oil within approximately 785 acres, and, (3) a total of fourteen pay zones offer potential for commercially productive reservoirs within the perimeter of the project area and of these, five are prolific Simpson sands.

The 3-D seismic will greatly enhance the geologists' and geophysicists' ability to identify structural features and closures and then pinpoint drill locations. Based on the results of the analogous periphery fields it is reasonable to assume that these closures will produce oil with recoveries in excess of 600 barrels of oil per acre foot with initial production in excess of 200 hundred barrels of oil per well/per day.

"The Liberty Ridge Project is an incredibly significant development for Homeland, says Armando Garcia, President of Homeland Resources. "A large-scale project like this has Homeland immediately participating in all phases of oil and gas exploration including prospect generation, leasing and drilling. "Moreover," says Garcia, "the production results from the surrounding (and geologically very similar) oil fields have been outstanding and provide us with great optimism with respect to future Homeland revenues and value for its shareholders."

About Homeland Resources
Homeland Resources is an expanding exploration and production company focused on developing North American and international oil and natural gas reserves. The Company's current focus is on the continued exploration and development of its land portfolio comprised of working interests in the Smoky Hill Project (5% interest), and working interest in the Liberty Ridge 3-D Seismic Project (5% interest). Homeland Resources is seeking to further develop its existing projects and to expand its portfolio to include additional interests in North America.

Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors but they include and are not limited to the existence of underground deposits of commercial quantities of oil and gas; cessation or delays in exploration because of mechanical, operating, financial or other problems; capital expenditures that are higher than anticipated; or exploration opportunities being fewer than currently anticipated. The Company has no official gas or oil reserves at this time and may not have sufficient funding to thoroughly explore, drill or develop its properties. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements and filings.

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