December 07, 2006 09:00 ET

Tuscany Commences Successful Drilling Program and Provides Operations Update

CALGARY, ALBERTA--(CCNMatthews - Dec. 7, 2006) -

Mr. Greg Busby reports

Tuscany Energy Ltd. (TSX VENTURE:TUS) (the "Company") is pleased to provide an operational update on recent activity performed on its west- central Saskatchewan properties and newly acquired lands in west-central Alberta.

As previously announced in the Company's interim report for the nine months ending September 30, 2006, Tuscany participated in a successful exploration well with an industry partner in west-central Alberta. The well spud in mid-November and was drilled, cased and completed and is currently undergoing production testing operations. Should the completion process be successful, the well will be tied into a nearby pipeline and placed onto production. The Company has a 30% working interest in the well. In addition, Tuscany has also initiated a 2-D seismic program over the lands which is expected to be completed by year-end. Due to the confidential status and competitive environment, the Company restricts further comment on the potential discovery. Additional information will be released subject to certain conditions that will not risk concurrent strategic planning for the area.

Earlier in the year, Tuscany completed the interpretation of its proprietary 3-D seismic data at Evesham, Saskatchewan. Analysis of the data has confirmed the structural trends that had previously been mapped over the Company's 100% held lands in the area. As a result, the Company licensed two wells in the fourth quarter. The first well was drilled in late November with better than expected results as open-hole logs indicate a thicker than average pay zone than the offsetting producing wells. Casing has been set, with completion and testing expected to occur by mid-December. Fieldwork has commenced on the second location and the Company anticipates that a well license should be approved by December 15, 2006. The Company expects to spud the second well in January 2007 subject to rig availability, normal regulatory approvals and land accessibility. Should the Company receive certain regulatory approvals in the first quarter of 2007, the Company will have access to several new drilling opportunities on its wholly owned lands at Evesham.

Finally, Tuscany entered into an agreement in early November with a major industry partner for the pooling of specific gas rights immediately south of Tuscany's new drilling locations at Evesham. The Company will have a 50% working interest in the recompletion project. The partner/Operator has advised that a service rig is scheduled to be at the location by December 15, 2006. Completion results, therefore, can be expected to be released prior to the Christmas break.

Management anticipates a successful exit to year-end with encouraging results from its operational efforts over the past year. Tuscany plans to continue participating in an active exploration and development program throughout the winter. Looking forward, the Company is well poised for another year that will begin with an aggressive approach for growth by increasing reserves, production and cash flow for our shareholders.

Tuscany is an emerging junior oil and gas company engaged in the acquisition, exploration and development of oil and natural gas reserves in western Canada.

Forward-looking statements - statements included in this press release that are not historical facts may be considered "forward-looking statements." All estimates and statements that describe the Company's objectives, goals or future plans are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Tuscany Energy Ltd.
    Greg T. Busby
    President & CEO
    (403) 264-2398
    (403) 264-2399 (FAX)
    Tuscany Energy Ltd.
    Robert W. Lamond
    (403) 269-9889
    (403) 269-9890 (FAX)