TG World Energy Corp.

TG World Energy Corp.

October 26, 2006 13:47 ET

TG World and JV Partners Announce Successful Bids in Alaska North Slope and Beaufort Sea Lease Sales

- AVCG 'on behalf of the JV companies' had apparent high bids of $836,800, 26% of industry total of $3.2 million -- acquiring 12 of 13 tracts in lands in Beaufort sea near-shore -- consolidated acreage block in Gwydyr Bay area 'where two exploration wells are expected to be drilled this winter with the possibility of a third well' -- consolidated acreage around the Titania prospect on the western side of the North Slope south of the large Alpine Field -- high bidder in a new prospect area north of the large Alpine Field - AVCG's new co-venturers 'new entrants to Alaska': TG World Energy, Ramshorn Investments and Bow Valley Energy, are all currently expected to exercise their rights to acquire their proportionate working interest share in the leasehold acquired by AVCG

CALGARY, ALBERTA--(CCNMatthews - Oct. 26, 2006) - TG World Energy Corp. (TSX VENTURE:TGE) ("TG World" or the "Company") announces apparent high bids, by Alaska Venture Capital Group, LLC ("AVCG"), in the Alaska North Slope area wide lease sale and the Beaufort Sea near-shore, state lease sale. Sealed bids from industry were opened on October 25, 2006 by the Alaska Department of Natural Resources in Anchorage, Alaska.

On behalf of the Joint Venture companies TG World, Ramshorn Investments, Inc. (a wholly owned subsidiary of Nabors Drilling USA LP) and Bow Valley Energy (TSX:BVX) ("JV's"), AVCG had successful bids totaling $836,800, or 26 percent of the total $3.2 million bid at both sales by eight industry bidders or bidding groups.

AVCG was apparent high bidder ($630,400) on 12 of 13 tracts bid, for 30,700 acres, in state jurisdiction lands in the Beaufort Sea near-shore. Seven of the bids (totaling $311,680 for 17,920 acres) consolidates AVCG's acreage block in their Gwydyr Bay prospects' area. The JV partners currently plan to drill two wells this winter on their Gwydyr Bay lands from onshore surface locations to distinctly different offshore subsurface targets. A third well may be drilled dependent upon initial wells' results. The other 5 high bids in the Beaufort Sea Sale (totaling $318,720 for 12,800 acres) are in a new area for AVCG, north of the Alpine Field.

In the North Slope Sale, AVCG consolidated acreage surrounding its Titania prospect on the western side of the North Slope in the Colville River area with the purchase of 4 tracts, for 8,960 acres. Total bids in this area were $111,360. The Titania prospect is south of the large 500 million barrel Alpine Field complex operated by ConocoPhillips. A 3D seismic shoot is currently planned in this area potentially this winter with possible exploration drilling in the 2008 winter season.

Operations in the Gwydyr Bay area and the other prospect areas held by AVCG will be managed by Anchorage-based Brooks Range Petroleum Corporation, a wholly-owned subsidiary of AVCG LLC.

The AVCG/TG World Energy/ Ramshorn/ Bow Valley Energy joint venture was formed earlier this year as an exploration strategic alliance covering a large area of mutual interest on the central part of the Alaska North Slope and adjacent near-shore leases in the Beaufort Sea. All of the JV's are currently expected to exercise their option to acquire their proportionate share of the leasehold acquired by AVCG once the leases are issued by the State of Alaska.

"This is a very successful sale result for us," said Cliff James, TG World's CEO. "We added acreage in our Gwydyr Bay and Titania Prospect Areas, and we acquired acreage in a new play area which we believe will add additional value to TG World going forward."

Corporate Profile

TG World is a Calgary-based, junior international oil and gas exploration company. Through a wholly-owned subsidiary, TG World holds a 20% carried interest in the Tenere Block, an oil and gas concession in the Republic of Niger, Africa, measuring 71,155 square kilometers (17.3 million acres). The Tenere Block contains the northern half of the Termit - Tenere Rift. The southern half is adjacent to the Agadem Block, where Petronas and Exxon have so far drilled six announced oil discoveries and one gas discovery. CNPC International (Tenere) Ltd. ("CNPCIT"), a unit of the China National Petroleum Corporation ("CNPC"), holds the other 80% of the Tenere concession and acts as operator of the project.

On March 18, 2006, TG World entered into a major exploration project through the formation of a joint venture on the Central North Slope of Alaska with Brooks Range Petroleum Corporation, a wholly owned subsidiary of Alaska Venture Capital Group, LLC. The Company's interest in the Central North Slope Alaska Joint Venture includes a 25 - 35% working interest in approximately 172,000 net acres of lease lands and an AMI under which additional lands may be acquired.

The statements contained in this News Release that are not historical facts are forward-looking statements. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "anticipate" or "will" and similar expressions) may include plans, expectations, opinions or guidance that are not statements of fact. Forward-looking statements are based upon the opinions, expectations and estimates of management as at the time such statements are made and, in certain cases, information provided or disseminated by third parties, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated in or implied by such forward-looking statements. These factors include, but are not limited to, such things as the volatility of prices for oil and gas and other commodities, commodity supply and demand, fluctuations in currency and interest rates, inherent risks associated with the exploration and development of oil and gas properties, ultimate recoverability of reserves, timing, results and costs of exploration and development activities, availability of financial resources or third-party financing, availability of drilling and related equipment and new laws and regulations (domestic and foreign). Forward-looking information respecting anticipated drilling activities on the North Slope of Alaska is based upon advice received from the operator of the JV Partnership, Brooks Range Petroleum Corporation ("BRPC"), which, in turn, is based, among other things, upon the current budget, development plans and overall strategy for exploration of the joint-venture lands on the North Slope of Alaska developed by BRPC and its JV partners, all of which are subject to change. The forward-looking statements of TG World Energy Corp. contained in this News Release are expressed qualified, in their entirety, by this cautionary statement. Additional information relating to various risk factors to which TG World is exposed in the conduct of its business (and which may affect the expectations or outcomes reflected in the forward-looking statements contained in this news release) are described in publicly available documents filed by TG World with certain securities regulatory authorities in Canada, which are available through SEDAR, at

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • TG World Energy Corp.
    Clifford M. James
    President and CEO
    (403) 265-4506
    (403) 264-7028 (FAX)
    TG World Energy Corp.
    Paul Moon
    Director, Corporate Communications
    (403) 265-4506
    (403) 264-7028 (FAX)