International Sovereign Energy Corp.
TSX : ISR

International Sovereign Energy Corp.

March 08, 2007 12:01 ET

International Sovereign Energy Corp.: Charapa, Ecuador Update

CALGARY, ALBERTA--(CCNMatthews - March 8, 2007) - International Sovereign Energy Corp. (TSX:ISR)(the "Company") is pleased to report that the Addendum to the Charapa Concession Agreement as approved and signed by PetroEcuador (the Ecuadorian National Oil Company), has been formally registered and receipted with the Ministry of Energy and Mines. The Addendum incorporates the revised forward work program for the Concession. Implementation of the modified work program requires an updated environmental baseline study of the Charapa Concession along with environmental impact studies for the areas to be covered in the pending seismic program as well as the access and drill pad location for the initial drill target in the Conejo section of the Concession (Conejo 1 well) which target is based on existing seismic data. Work is scheduled to commence in April, 2007.

The salient features of the Charapa Concession are as follows:

- The Charapa block is located in the North of Ecuador's Oriente Basin on the Colombian border and 15 Kms N.W. of the producing Lago Agrio field which has produced 145 million barrels of light oil since 1972, primarily from the cretaceous Hollin formation.

- The Charapa field has two Lower Cretaceous reservoirs: the Hollin sandstones, which is the producing zone in the Lago Agrio field, and the NAPO Formation Caliza 'B' fractured limestones.

- Cumulative past production from the Charapa field was some 1.694 million barrels of oil primarily from the Caliza 'B' reservoir.

- The Charapa block contains three (3) prospective untested structures, which are the primary areas of interest within the Concession and are the areas covered in the modifications to the Concession Agreement, namely Conejo, Charapa S.W., and Halcon. The three structures are reviewed below.

-- Conejo: The Conejo structure is bordered to the East by the same pronounced reverse fault that sets up the producing San Miguel/Acae field located 6 Kms to the North across the Colombian border. A vertical well for purposes of evaluating the Conejo structure is planned.

-- Charapa S.W.: Charapa S.W. is a seismically defined feature, this structure will be evaluated seismically as part of a 50 Sq. Km 3-D survey.

-- Halcon: The Halcon structure is located in the S.W. portion of the Concession. This structure will also be evaluated by the planned seismic program.

-- The revised Charapa work program totals $10.0 million and the production split with the National Oil Company is approximately 50:50.

With the completion and formal registration of the Charapa Concession Agreement Addendum the Company signed a Success Fee Agreement with Andes Trade & Investment Ltd. (Andes), a private company at arm's-length from the Company. The Agreement provides for a cash fee of $25,000 and the issuance of 50,000 common shares of the Company at a deemed value of $2.00 per share. Certain additional cash payments of up to a maximum of $200,000 could be payable based on set trigger point production levels from the Concession starting at 2,000 boed up to 3,000 boed. The Agreement is subject to regulatory approval.

The Company further reports that the Board of Directors approved a stock option grant to purchase 515,000 common shares of the Corporation to certain of its Directors, Officers, employees and consultants at an issue price of $2.00 per share with a three year vesting period subject to regulatory approval.

International Sovereign Energy Corp. is an oil and gas exploration development and production company with offices in Vancouver, British Columbia, Calgary, Alberta and Islamabad, Pakistan and is active in the exploration and development of hydrocarbon reserves in Western Canada and internationally.

Certain information provided in this press release contains forward-looking statements that by their nature are subject to numerous risks and uncertainties and readers are cautioned that actual results may vary considerably from those forecasted.

Shares Outstanding: 13,925,084

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • International Sovereign Energy Corp.
    Omair Choudhry
    Chief Financial Officer
    (604) 684-7372
    (604) 684-2407 (FAX)
    Website: www.isove.com