SOURCE: Homeland Resources Ltd.

December 03, 2010 13:11 ET

Homeland Resources Drills Three Successful Wells at Smoky Hill Project in Southern Oklahoma

ALBUQUERQUE, NM--(Marketwire - December 3, 2010) - Homeland Resources (OTCBB: HMLA) is pleased to report that the Company has drilled three successful wells at the Smoky Hill Project in southern Oklahoma. 

The three discovery wells at the Smoky Hill Project include the Marshall-1, the Bradley-1, and the Patton-1. The Marshall-1 and Patton-1 wells targeted Basal Oil Creek Sands formations, while the Bradley-1 well targeted an additional 2nd Bromide Sand formation objective. Each of the three separate prospect locations was selected based on positive anomalies from a proprietary database of 3-D seismic surveys held by Homeland and its partners.

Expected total program reserves to be developed at the Smoky Hill Project have been estimated to be in the range of 750,000 barrels of oil and 150 MMCF of natural gas.

Completion of the Patton-1 well has already commenced and is expected to be finalized and flowing shortly dependent on local weather conditions and surface equipment availability. Completion of the Marshall-1 and Bradley-1 wells will immediately follow. 

"The Company is very encouraged with our initial success at the Smoky Hill Project," said Armando Garcia, President of Homeland Resources. "The additional near-term revenue garnered from these new discoveries will undoubtedly boost our ongoing expansion and development, and in turn, continue to create further value for our shareholders."

Additional information regarding the Smoky Hill Project and other Homeland Resources corporate developments will be released as it becomes available.

About Homeland Resources

Homeland Resources is an expanding exploration and production company focused on developing North American 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 the 3-D Seismic Washita Bend Project (5% interest), both in southern Oklahoma. Homeland Resources is seeking to further develop its existing projects through development or offset drilling 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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