TUSK Energy Corporation
TSX : TSK

TUSK Energy Corporation

March 22, 2007 19:40 ET

TUSK Energy Corporation Announces Farm-In at Conroy

CALGARY, ALBERTA--(CCNMatthews - March 22, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

TUSK Energy Corporation ("TUSK") (TSX:TSK) announced today that it has entered into a farm-in agreement with a senior Canadian oil and gas production company in the Conroy area of British Columbia. Under the terms of the farm-in agreement, TUSK is committed to drill, complete and tie-in or abandon 40 wells, complete and tie-in or abandon 6 standing wells, construct approximately 6.5 miles of gathering system and a gas plant and sales line capable of processing at least 10 mmcf/d. Fifteen of the new drill wells and the gathering system must be completed by April 30, 2008 while the gas plant and sales line must be completed by June 30, 2008. The remainder of the commitment must be completed by April 30, 2009.

Upon completion of the commitment, TUSK will earn a 50% working interest in
approximately 90,000 acres, all existing wells, an existing gas gathering system, a 10 mmcf/d gas plant and current production of approximately 5 mmcf/d. During the earning phase TUSK will retain a 50% working interest in all new wells drilled.

TUSK has been named operator of the project and estimates capital spending necessary to meet its capital commitments to be approximately $75 million. Approximately 70% of the land is serviced by an all weather road and is accessible in the summer.

TUSK's common shares are listed on the Toronto Stock Exchange under the symbol
TSK. TUSK is an Alberta-based energy company engaged in the exploration for,
development and production of crude oil and natural gas in the Western Sedimentary Basin.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities of TUSK Energy Corporation ("TUSK") in any jurisdiction, including the United States. The common shares of TUSK have not been and will not be registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act") or any state securities laws and have not been and will not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.


Contact Information

  • TUSK Energy Corporation
    Norman W. Holton
    Chairman
    (403) 264-8875
    (403) 263-4247 (FAX)
    or
    TUSK Energy Corporation
    John R. Rooney
    Chief Executive Officer
    (403) 264-8875
    (403) 263-4247 (FAX)
    or
    TUSK Energy Corporation
    1900, 700 - 4th Avenue SW
    Calgary, Alberta T2P 3J4
    Website: www.tusk-energy.com