SOURCE: Homeland Resources Ltd.

March 22, 2011 09:15 ET

Homeland Resources Reports Smoky Hill Production Wells Averaging 405 Barrels of Oil per Day

ALBUQUERQUE, NM--(Marketwire - March 22, 2011) - Homeland Resources Ltd. (OTCQB: HMLA) (PINKSHEETS: HMLA) is pleased to report that flow rates for the three production wells at the Smoky Hill Project has averaged 405 barrels of oil and 100 mfc of natural gas per day and for the past week.

The Marshall-1 is currently flowing at the highest rate and is averaging approximately 320 bbls/day of oil per day. Pressure rates at the Marshall-1 well are strong and little production decline is expected in the near future.

The Bradley-1 is flowing at an average rate of approximately 60 bbls/day of oil and 100 mcf/day of gas. Flow rates from the Bradley-1 initially exceeded 100 bbls/day and have subsequently stabilized at the current rate.

The Patton-1 is currently flowing at a average rate of 25 bbls/day of oil and 8 mcf/day of gas. However, there are still several pay zones yet to be perforated at this well. These zones are expected to be perforated and producing in the upcoming weeks.

All three of these prospect locations were selected based on positive anomalies from a proprietary database of 3-D seismic surveys done by Homeland and its partners. Expected total program reserves to be developed at the Smoky Hill Drilling Program could be in the range of 750,000 BO and 0.15 BCFG. Moreover, based on this success, the company is now actively evaluating locations for offset drill sites to all three production wells.

"The Company and its partners are very encouraged by the significant production from each of the first three wells," says Armando Garcia, President of Homeland Resources. "We are very confident with respect to the long-term success of the wells and are currently preparing to expand operations at Smoky Hills with an offset well to further exploit the new discovery at Marshall-1." 

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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