TG World Energy Corp.
TSX VENTURE : TGE

TG World Energy Corp.

January 31, 2011 09:00 ET

TG World Provides Update on International Drilling Activities

CALGARY, ALBERTA--(Marketwire - Jan. 31, 2011) - TG World Energy Corp. (TSX VENTURE:TGE) ("TG World" or the "Company") is pleased to provide the following update on its activities in Alaska, Niger and the Philippines.

  • Drilling of the North Tarn oil prospect in Alaska to commence in early March 2011
  • Drilling of the Facai-1 oil prospect in Niger, Africa to commence May 2011

In Alaska, the joint venture partners are progressing towards an early March 2011 spud date for the prospective North Tarn exploration well under the guidance of operator, Brooks Range Petroleum Corporation ("BRPC"). BRPC has secured a Nabors drilling rig that will be mobilized from Deadhorse, Alaska, to the North Slope drilling location. Work will begin soon on the construction of an ice road, with mobilization activities commencing in the last week of February. The current schedule forecasts a nine day rig mobilization period to site, followed by approximately nine days of drilling to reach the primary reservoir objective in the Brookian sands. The well is designed to test an exploration prospect mapped on 3-D seismic data that has two prospective reservoir zones, both of which are productive in the adjacent Kuparuk Field Unit. Total drilling depth is estimated at approximately 6,300 feet. The well is being funded by the Alaska joint venture partners as a farm-in on ENI Petroleum lands. TG Alaska will pay 35% of the well costs to earn 20% of the working interest in the North Tarn prospect area.

In Niger, TG World and its operator partner, China National Petroleum Corporation ("CNPC") (CNPC International Ténéré Limited), are progressing towards a May 2011 spud date for the drilling of the Facai-1 exploration well in the prospective Ténéré Basin. Well site construction is underway and the drilling rig is undergoing refurbishment before mobilization to the site. The well will test a faulted anticline mapped from proprietary 2-D seismic data. The primary reservoir objective is the Cretaceous-age Donga sandstones. It will take an estimated 70 days to drill to the proposed 12,000 foot depth. TG World has a 20% working interest in the licence. The well is being drilled at no cost to TG World as this is the last well in a three well exploration carry agreement funded by CNPC.

Additional details regarding the prospects to be drilled in Alaska and Niger are available on the TG World website at www.tgworldenergy.com

In the Philippines, the partners in Service Contract 54A ("SC 54A"), led by operator Nido Petroleum Limited, expect to complete the previously announced de-mobilization plan from the Tindalo well site by the end of February 2011. This work includes the sale of approximately 75,000 barrels of crude oil produced from the Tindalo. TG World holds a 12.5% interest in SC 54A. The partners are in the process of analyzing operations over the past year, with the intention of developing a new plan for returning to the SC 54A fairway.

As previously announced, TG World Energy Corp. and TVI Pacific Inc. have entered into a Plan of Arrangement whereby holders of TG World Energy Corp. shares will receive 0.458 of a common share of TVI Pacific Inc. for each TG World Energy Corp. share held. The Plan of Arrangement is subject to approval of TG World Energy Corp. shareholders at a meeting to be held in early March 2011.

Corporate Profile

TG World is a Calgary-based, junior international oil and gas company with exploration, development and production operations in the Philippines, Alaska and Niger.

TG World (BVI) Corp. (a wholly-owned subsidiary of TG World) is partnered with operator Nido Petroleum Ltd., Kairiki Energy Ltd. and Trafigura Ventures III BV in a joint venture for Service Contract 54A in the North West Palawan Basin of the Philippines. 

TG World Energy Inc. (a wholly-owned subsidiary of TG World) is partnered with operator Brooks Range Petroleum Corp., Alaska Venture Capital Group, Brooks Range Development Corp. and Ramshorn Investments Inc. in a joint venture that is pursuing oil and gas opportunities on the Central North Slope of Alaska.

TG World Petroleum Ltd. (a wholly-owned subsidiary of TG World) is partnered with operator CNPCIT, a unit of the China National Petroleum Company, in the Ténéré Block oil and gas concession in the Republic of Niger, Africa. 

Certain information set out in this News Release constitutes forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in some cases, information supplied by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from third parties is reliable, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include, but are not limited to, such things as general economic conditions in Canada, the United States, Niger, the Philippines and elsewhere, 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 of oil and gas properties (including mechanical problems), ultimate recoverability of reserves, production, timing, results and costs of exploration and development activities, political or civil unrest, availability of financial resources or third-party financing, availability of equipment and personnel, and new laws and regulations (domestic and foreign). Forward-looking statements respecting the nature and timing of mobilization and drilling activities in Alaska for the North Tarn exploration well are based upon the results of prior exploration activities, the status of discussions with the operator and other joint venture partners as to the nature and extent of the Alaska exploration program, advice received from the operator of the joint venture and the current budget, exploration plans and overall strategy in Alaska (which are all subject to change). Forward-looking statements respecting the nature and timing of mobilization and drilling activities in the Ténéré Block in Niger for the Facai-1 exploration well are based on advice received from the operator, CNPC International Ténéré Limited, and the current budget, exploration plans and overall strategy for the Ténéré Block (which are all subject to change). Activities in Niger are also subject to the security situation in various parts of the country, over which neither the operator nor the Company has any control. Forward-looking statements respecting the nature and timing of de-mobilization activities in the Philippines are based on the discussions carried out to date with Nido Petroleum Limited, the current budget and plans of the joint venture partners and the current budget, exploration plans and overall strategy in the Philippines (which are all subject to change). Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this News Release and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes. Forward-looking statements of TG World contained in this News Release are expressly 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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