Turnkey E&P Inc.

Turnkey E&P Inc.

October 12, 2006 11:55 ET

Turnkey E&P Inc Provides Updates on Its Operations

CALGARY, ALBERTA--(CCNMatthews - Oct. 12, 2006) - Turnkey E&P Inc (TSX:TKY) through its wholly owned subsidiary, Turnkey E&P Corporation, today provided updates on its active project areas.

Fetter Project, Wyoming

The State 4-36-H well, in which Turnkey is paying 60 percent to casing point and 40 percent thereafter to earn 40 percent working interest in the spacing unit, has reached a total measured depth of 12,498 feet. Drilling operations have now been completed with completion and testing operations expected to commence shortly after the drilling rig is moved off location. 41/2-inch casing has been run to total depth. "Encouraging natural gas and condensate flow rates were encountered while drilling the Frontier interval. Completion and testing operations will be carried out in the coming weeks with a completion rig," commented John Y. Jo, Turnkey E&P Corporation's president.

Tumlinson Project, Texas

Turnkey participated in the drilling of the Tumlinson #1 well located in Goliad County, Texas, with a 10 percent working interest in approximately 280 gross acres. The well was drilled by a third party drilling contractor and reached a total depth of 13,202 feet in August, 2006. The well logged over one hundred feet of net pay from multiple zones in the Wilcox formation. The operator is planning to perform fracture stimulation operations to test the lower Wilcox sands later this month. "If the initial well proves up the potential of the various Wilcox series sands, we plan to explore opportunities with the operator to apply Casing Drilling® technology through the use of one of our purpose-built rigs," Jo said.

Big Wells Project, Texas

One of Turnkey's drilling rigs is currently drilling lateral extensions in a re-entry well in the Big Wells Project area in Zavala and Dimmit Counties, Texas. Turnkey has approximately a 13.2 percent working interest in the 2,530-acre play which directly offsets a commercial well that Turnkey recently drilled for the same operator. Jo stated, "We have been drilling for the same operator for most of the year applying their technique to re-enter or re-drill old abandoned wells and drill one or more lateral extensions in the Austin Chalk formation. We are very pleased to join the operator with a working interest position in the redevelopment of this mature play."

Exploitation Project, Louisiana

Turnkey previously announced its plans to engage in a 6,000-acre Gulf oil play designed to redevelop an abandoned onshore Louisiana field. Turnkey has 100 percent working interest in the play and has been focusing its activity on leasing key acreage for the play. Jo said, "We have reached our goal of leasing at least 70 percent of the acreage in the play and are ready to move forward to drilling the first well this year. This represents another significant step toward expanding the capability of our drilling rigs in an area where we believe Casing Drilling® would add value with minimized formation damage from drilling as well as improved cementing and completion practices." Turnkey is also engaged in securing additional acreage in and around the project area with farm-ins and options.

Turnkey is an independent oil and gas company that is focusing its oil and natural gas acquisition, exploitation, development and production activities in the continental United States using Casing Drilling® technology. Casing Drilling® is a registered trademark of Tesco Corporation. Additional information about Turnkey can be found at its website: www.turnkeyep.com.

This release and the Company's website referenced in this release contain forward-looking statements including expectations of future production and components of cash flow and earnings. Investors are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Turnkey. These risks include, but are not limited to; the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to; operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks including, without limitation, blowouts and spills, and the uncertainty of estimates and projections of production, costs and expenses. The risks outlined above should not be construed as exhaustive. Investors are cautioned not to place undue reliance on any forward-looking information. Turnkey undertakes no obligation to update or revise any forward-looking statements.

Contact Information

  • Turnkey E&P Inc.
    Dale W. Bossert
    President and Chief Executive Officer
    (403) 828-5720
    Turnkey E&P Inc.
    Martin Hall
    Vice-President, Finance and Chief Financial Officer
    (403) 616-3910