ITL Capital Corporation

ITL Capital Corporation

August 10, 2005 08:30 ET

ITL Capital Acquires Interest in Stewart Natural Gas Project, Texas

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 10, 2005) - ITL Capital Corporation (TSX VENTURE:ICL) is pleased to announce that it has acquired a 5% working interest (3.75% net revenue) from Horizon Industries Ltd. (Horizon) (TSX.V: HRZ), operator of the Stewart Natural Gas Project located in Goliad County, south Texas. The acquisition of an interest in the Stewart Gas Project complements ITL Capital's interest in the Henry Dome Gas Project, also located in south Texas.

The Stewart Gas Project is a 544-acre lease package located within the Jobar Gas Field. In late 1997, Edge Petroleum discovered the Jobar Field, with production from the Middle Yegua Formation between 5300 and 5500 feet. There are 9 gas wells in the Jobar Field, which have produced to date a cumulative 5.894 BCF (billion cubic feet) of natural gas.

3D seismic obtained by Horizon over the Stewart Project lease area indicates the presence of a Middle Yegua channel up to 130 feet in thickness and covering 90 acres on the east side of the lease. Two drilling locations within this channel have been identified showing all the attributes required for gas production. This 3D seismic interpretation also identified a second, smaller channel to the west, which could result in two additional future locations.

The drilling of the first well on the Stewart Gas Project is expected to begin at the end of August with site preparation having commenced. Total depth on the Stewart #1 well is expected to be 5,700 feet with a Middle Yegua Sands target. ITL Capital has paid $47,500USD for its 5% working interest towards the estimated drilling and completion costs of the Stewart #1 well.

Deeper Zone Discovered

1.5 miles north of the Stewart lease, Gas and condensate was discovered by Chesapeake Energy Corporation in 2003 in the Marshall Field in the deeper Middle Wilcox Formation. The Chesapeake Carmichael #1 well was put on production in December 2003 at an initial production rate of 5 MMCF/D and 50 BBLS of condensate per day. As of April 2005, the well has produced 1.31 BCF of gas and 49,132 BBLS of condensate. Subsequent to this discovery, Chesapeake has drilled several more wells into the Middle Wilcox Formation on the Carmichael lease and the Bammert lease located north and east of the Stewart lease. All wells drilled are producing between 1 and 5 MMCF/D.

Santos Ltd. and Etoco Inc. extended the Marshall Field further to the south, towards our Stewart Project, with a series of wells. The most prolific to date is the Eichman #1 well drilled by Santos Ltd. This well was completed in April 2005 and was tested at 21 MMCF/D with approximately 30 BBLS of condensate. This well has recently been put on stream reportedly producing in excess of 21 MMCF/D. Etoco Inc. is currently operating 1/2 mile to the north of the Stewart Project lease. The Heard #1 well was completed in January 2005 and tested at 8.9 MMCF/D with in excess of 50 BBLS of condensate from perforations between 10,300 feet and 10,950 feet. The Heard #2 and #3 wells are currently being completed and no results are available at this time.

Based on the recent Wilcox Formation activity in the immediate area, Horizon acquired and processed the 3D data covering the deeper Wilcox horizons (10,000' to 12,000') on the Stewart Project lease. The data is of high quality and shows that the Stewart Project lease is on the next down faulted block from the wells in the Marshall Field. These amplitudes appear to be at least as strong as or possibly stronger than the Marshall Field anomalies. Recently, Etoco and Esenjay have permitted locations and initiated drilling 1,500 feet north of the Stewart Project lease boundary.

In other news, clean out and completion of the JB Henry #1 Gas Well on the Henry Dome Project, located in McMullen County, Texas, is expected to occur by the end of the month.

For further information on ITL Capital Corporation (TSX.V: ICL) visit the Company's web site at

ITL Capital Corporation is a resource exploration company actively involved with the development of natural gas projects in McMullen County and Goliad County, Texas. The Company is also developing a gold property in the Red Lake Mining District of Northwestern Ontario, Canada.


"Jim Pettit"


This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.

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

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