Opal Energy Corp.

Opal Energy Corp.

March 09, 2007 15:07 ET

Opal Energy Corp: Update on South Texas Exploration Package

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 9, 2007) -


Opal Energy Corp (the "Company") (TSX VENTURE:OPA) today reported on current activities related to activities under its South Texas Exploration Agreement with Paleon Oil and Gas Ltd. Opal is funding 70% of the program and Paleon the remaining 30%. Opal's investment in the program is estimated at US$ 8 million for 2006-07.

Sue-Ann Tacquard #1

The first well drilled under the Agreement was returned to production on March 7, 2007 following a re-completion in the 9,514-9,520 ft sand. The well is flowing at an initial rate of 160 Mcf/day and 60 bbl of oil a day. There are two additional shallower re-completion targets in this well.

Opal Lampley #1

Evaluation of the second well in the Agreement was completed on March 8, 2007. The well log analysis indicated two potential gas zones the Wilcox Formation. The lower zone is a 30 foot thick gas zone with low porosity. Hydraulic fracturing of the zone to increase productivity was not deemed to be technically feasible due to the fact it was sitting on top of a water zone. The upper zone was a 10 ft gas interval demonstrating better porosity but lower resistivity readings than in adjacent wells productive in this zone. After careful analysis, Opal felt that the overall potential of the zones was about 1/5 of a bcf of gas and therefore would not provide an adequate return on the completion costs of approximately $600,000. The decision was made not to set pipe.

Opal Musselman #1

Construction of the drilling pad for the third well under the Agreement is scheduled for Monday, March 12, 2007, barring additional rain in the area. It is expected that the well will be spudded in two weeks. The Musselman well will access a reservoir previously drilled but not produced due to operational well problems. A well log from the old well indicates a hydrocarbon bearing section, and the position within the reservoir is being optimized further up the structure.

3-D Seismic Shoot

Permitting activities related to Opal's 75 sq. mi. seismic shoot in South Texas are now 90% complete. Survey crews and drillers have moved in and started drilling shot holes. Weather permitting, data acquisition and processing will be completed on schedule by the end of Q3-2007. The goal of the seismic shoot is to uncover dozens of new high-quality drilling prospects starting in Q4-2007.

Commenting on the spate of recent results, Opal CEO Ron Oligney said, "it's been a week of mixed news, but overall we are pleased with progress of our South Texas exploration package, which provides another solid plank in Opal's business plan and, we remain convinced, will produce solid returns for our shareholders."

Opal Energy

Opal Energy Corp, through its U.S. subsidiary Opal Energy Inc., offers an aggressive, disciplined and results-oriented vehicle to invest in the U.S. Exploration and Production "E&P" sector with a particular focus on natural gas exploration targets in South Texas. The business strategy is to build asset value through drilling, growing a production platform upon which will be superimposed some potential high value exploration opportunities. Drilling inventory will be continuously enhanced by the implementation of a series of proprietary 3-D seismic shoots.

On behalf of the Board of Directors

Opal Energy Corp

Ronald E Oligney, CEO and Director

John H. McAdam, President and Director

This release includes certain statements that may be deemed forward-looking statements. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, production activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, production and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Opal does not assume a duty to update these forward-looking statements. For more information on the Company, Investors should review the Company's filings that are available at www.sedar.com.

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

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