TG World Energy Corp.
TSX VENTURE : TGE

TG World Energy Corp.

December 21, 2006 11:29 ET

TG World Provides Central North Slope Alaska Joint Venture Update

- Construction of ice roads to provide access to drill site pads commenced - Spudding of first well scheduled for mid-January 2007 - Drill program to test 3 oil prospects: -- 2 exploration prospects to be tested by Sak River No. 1 and a sidetrack; -- North Shore No. 1 well to be drilled as a confirmation well to an existing oil discovery - 128 square mile 3-D seismic program planned for JV lands at Gwydyr Bay

CALGARY, ALBERTA--(CCNMatthews - Dec. 21, 2006) - TG World Energy Corp. (TSX VENTURE:TGE) ("TG World" or the "Company") is pleased to provide an update on the Alaska Central North Slope winter 2006-07 exploration drilling program, which is being carried out by the project operator, Brooks Range Petroleum Corp. ("BRPC" or the "Operator"), a wholly-owned subsidiary of Alaska Venture Capital Group ("AVCG"). The current program contemplates the drilling of two wells and a sidetrack targeting three oil prospects north of the Prudhoe Bay unit. If time permits, a third well may also be drilled this winter drilling season. For past information concerning this project, please refer to the Company's website at www.tgworldenergy.com.

Ice Road Construction and Rig Move

Construction of two ice roads (designed to provide access to two onshore drill site pads) is currently underway. The main ice road starts at the S-Pad in the Prudhoe Bay field and will extend approximately six miles north to the Sak River pad, the more northerly of the two ice pads. The second road is a short spur ice road extending east from the main ice road to the North Shore pad. Both of the ice pads are onshore. The drilling plan for the North Shore well contemplates the use of directional drilling to target a prospect under the Kuparuk River Delta, while the plan for the Sak River well and sidetrack anticipates the use of directional drilling to target offshore prospects located under the Beaufort Sea, within Alaska state waters. The ice roads are expected to be open at the end of December.

TG World has been advised that final commissioning is underway for Nabors Drilling Rig 16E. Transportation of the rig to the first drilling pad is expected to commence with the opening of the ice roads. The first well is expected to spud in mid-January 2007. An on-site camp will support most of the personnel involved in the drilling activities.

North Shore No. 1 Well

The Operator plans to drill the North Shore No. 1 as the first well in the program, subject to timely finalization of farm-out agreements. Jim Winegarner, Vice President of Land and External Affairs for BRPC, has noted that "the North Shore No. 1 well will target a tilted fault block accumulation that the Mobil Gwydyr Bay South No. 1 well tested oil in 1975. The target prospect lies within an Exxon, Chevron and ConocoPhillips lease - the lease owners have expressed support for a farm-out for the prospect."

Sak River No. 1 and No. 1A Well

The second well in the drilling program is the Sak River No. 1 and No. 1A well. Jim Winegarner has noted that the Operator plans to first "drill a structural closure that we see in the lower Kuparuk. We plan to come back and sidetrack the well to test the extent of hydrocarbons we expect to see in the first well sand, as well as what can be seen on seismic to be a thick upper Kuparuk." The Sak River well and sidetrack will target offshore Gwydyr Bay prospects in AVCG/JV acreage. According to the Operator, the Sak River prospects were formerly part of the BP-operated Sak River unit. BP had planned to drill in the unit during the winter 2002-03 drilling season, with AVCG holding a 38 percent working interest in the well. However, that well was never drilled and the Sak River unit was later terminated.

3-D Seismic Program

Veritas Geophysical has been contracted to acquire 128 square miles of 3-D seismic data over JV lands in the Gwydyr Bay Prospect Area. This program is scheduled to commence on March 21st, 2007 and the Operator expects that the acquisition phase of the program will take approximately 21 days to complete. Prospects mapped from this data will be candidates for the winter 2008 drilling program.

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. CNPCIT, a unit of CNPC, holds the other 80% of the Tenere concession and acts as operator of the project. The Saha-1 exploration well, the first of a three-well back-to-back program, began drilling on October 30, 2006.

On March 18, 2006, TG World Energy Inc., a wholly-owned subsidiary of TG World, entered into a major exploration project through the formation of a joint venture with Brooks Range Petroleum Corporation. The BRPC / TG World Joint Venture ("JV") was formed as an exploration strategic alliance covering a large area of mutual interest on the Alaskan Central North Slope. Membership in the JV was expanded in June 2006 with the addition of Ramshorn Investments, Inc., a wholly owned subsidiary of Nabors Drilling USA, LP, and in October 2006, with the addition of Bow Valley Alaska Corporation, a wholly-owned subsidiary of Bow Valley Energy Ltd. The Company's indirect interest in the Central North Slope Alaska Joint Venture includes a 25 - 35% working interest in approximately 182,394 net acres of lease lands and an AMI under which additional lands may be acquired. The Company has a 35% working interest in the three well Gwydyr Bay program planned for 2007.

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", "plan", "contemplate", "scheduled" 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 (such as BRPC/AVCG), 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 Alaskan North Slope is based, among other things, upon the current budget, development plans and overall strategy for the exploration of joint venture properties in Alaska developed by TG World and other joint venture participants, all of which are subject to change. Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such forward-looking statements will prove to have been correct. Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this News Release. 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 www.sedar.com.

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

Contact Information

  • TG World Energy Corp.
    Clifford M. James
    President & CEO
    (403) 265-4506
    (403) 264-7028 (FAX)
    or
    TG World Energy Corp.
    Paul Moon
    Corporate Communications
    (403) 265-4506
    (403) 264-7028 (FAX)
    Email: info@tgworldenergy.com
    Website: www.tgworldenergy.com