Open Range Energy Corp.
TSX : ONR

Open Range Energy Corp.

October 10, 2006 16:53 ET

Open Range Energy Corp. 'TSX:ONR' Announces Significant Cadomin Natural Gas Discovery at Its Deep Basin Ansell/Sundance Property

CALGARY, ALBERTA--(CCNMatthews - Oct. 10, 2006) -

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

Open Range Energy Corp. (TSX:ONR) is pleased to announce a natural gas discovery at the Company's Ansell/Sundance property in the Alberta Deep Basin. The Open Range et al Ansell 8-27-53-20 W5M well was rig-released on September 10th, 2006 and encountered approximately 20 metres of net gas pay in the Cretaceous Cadomin Formation. The Cadomin zone was fracture-stimulated and on a 24 hour flow and build-up test the well had a final flow rate of 7.2 mmcf/d of natural gas with a flowing tubing pressure of 2,066 psig. Although this well will undergo natural decline when it commences production, it is expected to be one of the best wells drilled to date on the property.

Open Range is operator of this discovery well and holds a 50% working interest with the balance being held by its partner, Canadian Forest Oil Ltd. The 8-27 well is the first to be drilled utilizing the partnership's proprietary 75 square-mile 3D seismic survey.

Open Range has initiated the tie-in of this well to its third-party processor and estimates production will commence in November 2006. The Company expects production rates will initially be restricted to a range of 1-3 mmcf/d gross (80-250 boe/d net) due to processor capacity constraints. The 8-27 well also encountered natural gas pay in the Bluesky Formation, which Open Range plans to complete upon receipt of commingling approval and scheduled expansion of third-party processing capacity.

At Ansell/Sundance, Open Range is currently drilling the second location of its four-well exploration program planned for the second-half of 2006. At this time, the Company has a downspacing development drilling inventory of 25 locations and is on track to meet its 2006 target exit rate of 1,200 boe/d.

OPEN RANGE ENERGY CORP. IS A PUBLICLY TRADED CANADIAN ENERGY COMPANY INVOLVED IN THE EXPLORATION, DEVELOPMENT AND PRODUCTION OF NATURAL GAS AND CRUDE OIL IN WESTERN CANADA.

Reader Advisory

This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond Open Range's control, including: the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Open Range's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Open Range will derive there from. All amounts are denominated in Canadian funds unless otherwise specified.

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Open Range Energy Corp.
    A. Scott Dawson, P.Eng.
    President and Chief Executive Officer
    (403) 205-3704
    Website: www.openrangeenergy.com