Jumbo Development Corporation
TSX VENTURE : JBO

Jumbo Development Corporation

October 31, 2005 23:52 ET

Jumbo Announces Third Quarter, 2005 Results

TORONTO, ONTARIO--(CCNMatthews - Oct. 31, 2005) -

EXECUTIVE CHANGES, APPOINTMENT OF CHIEF FINANCIAL OFFICER, NEW TORONTO OFFICE, REVISION OF WORKING INTERESTS IN MADERA LEASES AND THREE WELL DRILL PROGRAM

Jumbo Development Corporation ("Jumbo") (TSX VENTURE:JBO) wishes to announce the results of 3rd quarter 2005 operations, executive changes, the appointment of Gary Leonard CA, as Chief Financial Officer and VP Finance, the opening of a new Toronto office, the increase to 56.25% of Jumbo American Petroleum Corporation's working interest in the Jumbo 19/1 well on the Madera Lease Prospect and a three well drill program on the Madera Leases Prospect

Third Quarter Operations

For the quarter ended August 31, 2005, Jumbo's share of net revenues from natural gas and oil production was $605,366 resulting in net income from operations of $376,722 (2004 - loss of $55,125).

During the quarter operational problems were experienced with the loading up of condensates in the natural gas produced from the Jumbo 19/1 well, in that there appeared to be insufficient natural gas pressure to lift the amount of condensates produced from the 4 different producing zones relative to the natural gas produced by these zones. These problems are expected to be overcome by the installation of compression facilities into the wellhead infrastructure. An additional problem in the form of a partial obstruction has been identified in the vicinity of the producing zones. Through the use of a coil tubing high pressure jet system it is anticipated this obstruction will be removed. The aftermath cleanup and remedial work associated with the recent Hurricanes Katrina and Rita that passed through the Texas/Louisiana oilfields in August and September this year has resulted in enormous shortages of manpower and resources in the region, which has caused excessive delays in receiving the necessary compressors and pipe work for the compression facilities and the chemicals and equipment to carry out a proposed acid treatment.

These operational problems are expected to be remedied during the course of this current quarter. Production of natural gas and condensates has continued throughout, albeit at considerably lower levels than the expected capacity of the Jumbo 19/1 well.

Establishment of Toronto Office

Jumbo has established a new Toronto corporate office at Suite 500, 357 Bay Street, Toronto, M5H 2T7

Executive Changes

Mr. W. Fred Christensen has stepped down as Chief Executive Officer of Jumbo, but retains the position of Chairman. Glenn Laing has assumed the Chief Executive Officer role in addition to the positions of President and Chief Operating Officer

Appointment of CFO and VP Finance

Mr. Gary Leonard, CA has been appointed CFO and VP Finance, effective September 15, 2005. He is based at the Toronto office

Revision of Madera Leases Prospect Working Interest.

Negotiations with the other working party interests in the Madera Leases Prospect as part of the reconciliation and adjustments of expenditures for the Jumbo 19/1 well, have resulted in Jumbo's US subsidiary, Jumbo American Petroleum Corporation increasing its working interest to 56,25%.from a previous 50% working interest.

Future Drill Program at Madera Lease Prospects

Jumbo has made application for the necessary permits to undertake a further three well drill program on the Madera Leases Prospect. These permits are expected to be issued in the near future.

It is expected that two shallow oil wells (9,500 feet) and one deep natural gas well (16,500 feet) will be drilled to test the Brushy Canyon Formation and the Strawn /Atoka and Morrow Formations respectively in the Permian Basin.

Sierra Engineering of Midland Texas have been appointed as drilling engineers for these test wells and suitable rigs are being sourced

Jumbo is a junior oil and gas exploration, development and early stage production company focused on the Permian Basin in New Mexico and West Texas, South Texas and Rocky Mountain States, United States of America.

Shares Outstanding: 55,365,992

The TSX VENTURE EXCHANGE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Jumbo Development Corporation
    Glenn Laing
    CEO, President and Chief Operating Officer
    (416) 368-2114
    (416) 368-3259 (FAX)
    or
    Jumbo Development Corporation
    Gary Leonard
    Chief Financial Officer and VP Finance
    (416) 368-2114
    (416) 368-3259 (FAX)
    www.jumbodevelopment.com