Opal Energy Corp.
TSX VENTURE : OPA

Opal Energy Corp.

June 06, 2007 13:24 ET

Opal Joins Milagro Exploration in K2 Wilcox Well

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 6, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Opal Energy Corp (the "Company") (TSX VENTURE:OPA) is very pleased to announce that it has committed to a one-eighth interest in the K2 Prospect located in Colorado County, Texas. The operator, Milagro Exploration, recently spud the well which will test nine distinct Wilcox Formation targets. The Wilcox Formation is a very prolific producer in South Texas.

This 16,800 foot well will be drilled through nine stacked, 300 - 500 acre, high side, 3 way fault closures approximately 300 feet up dip to the Shell #5 Kane Brandon well. This well encountered numerous mudlog shows with apparent pay in two zones. According to Milagro Exploration, the overall target size is potentially 50 to 100 BCFE (Billion Cubic Feet Equivalent) of natural gas.

Opal's commitment to secure participation and for the dry hole costs is approximately $US1.1 million and should the well be productive, a further commitment of approximately $US326,000 of the Company's funds would be required for completion costs. The well should reach total depth in mid July or so.

Ron Oligney, CEO, states, "This opportunity to participate in the K2 well is a privilege born of the quality people Opal has on staff. We seized the moment as this type of "Big BCF" well is precisely the type of project Opal wants to drill. K2 will lead off Opal's parade of Big BCF wells which we expect to drill sequentially right through to year end."

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 sector with a particular focus on natural gas exploration targets in South Texas. The Company is actively identifying, funding and drilling a portfolio of modest to high to extremely high-return natural gas exploration targets. Drilling risk is mitigated using advanced seismic techniques and by taking carried working interests in most wells (attracting funding partners for its wells). Opal has undertaken a 75 square mile 3D seismic shoot and will deploy an estimated $17 million to upgrade and expand its portfolio of drilling prospects in 2007-08.

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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