Storm Ventures International Inc.

Storm Ventures International Inc.

January 16, 2006 17:30 ET

Storm Ventures International Inc.: News Release

CALGARY, ALBERTA--(CCNMatthews - Jan. 16, 2006) - STORM VENTURES INTERNATIONAL INC. ("SVI") would like to provide an update of its operational and project development activities in North Africa and the North Sea.

In Tunisia, SVI has completed the drilling and evaluation of the Oum Zoughar 2 exploratory test on the Remada Sud permit in Southern Tunisia. The Storm operated well has been suspended after the evaluation of the Ordovician and Silurian Acacus Formations. The Ordovician appears to be gas bearing but the reservoir quality is poor and no gas was recovered on completion. Light oil was recovered from the Acacus formation but at rates too low to be commercial at this time. Further exploratory activity on five additional prospects identified on the 1.25 million acre Remada Sud block will be proposed after integration of all the newly acquired data and discussions with the Tunisian authorities and our partner Cygam Energy Inc. Although disappointed with the lack of commercial success in our first well, we are encouraged that light oil was recovered during the completion, which confirms a significant northern extension of the existing Acacus play over a large portion of our permit.

We are actively evaluating additional opportunities in both southern Tunisia and on our 1.2 million acre Hammamet Offshore block. Depending on the availability of a seismic vessel in the region, we plan on completing a 3D survey in the Hammamet block over multiple prospects late in 2006 for drilling in 2007.

In the North Sea, SVI's Aberdeen-based fifty percent owned affiliate, Silverstone Energy, recently concluded a significant farmin in the highly prolific southern North Sea V-Fields area. As part of this farmin, Silverstone has made plans to spud its first offshore operated well in March 2006 with the drilling of the Vanquish prospect. Exploratory tests in this area are forecast to cost approximately US$15 million.

The well will be the first of two commitments to be drilled in 2006 on this large contiguous farmin block on which Silverstone has identified 8-10 prospects each averaging 60-80 Bcf gas in place. We believe this project is an excellent starting point in establishing operating expertise and credibility in a challenging new basin with excellent economics. Our activities, including our share of Silverstone's budget for 2006, will be funded from the proceeds of the Cdn$40 million equity offering which was completed in October 2005.

SVI is a Calgary based private energy company focused on the development of international oil and gas projects with offices in Tunis and Aberdeen. SVI's largest shareholder is TSE listed Storm Exploration Inc.

Contact Information

  • Storm Ventures International Inc.
    Matthew Brister
    President and Chief Executive Officer