Tyner Resources Ltd.
TSX VENTURE : TIP

Tyner Resources Ltd.

November 27, 2006 09:15 ET

Tyner Resources Ltd.: Operational Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 27, 2006) - Tyner Resources Ltd. ("Tyner") (TSX VENTURE:TIP) - As announced in July 2006, Tyner re-entered the existing Stephens #1 well in order to re-evaluate the previously producing intervals. This well had a significant short-term test flow rate before being shut in. Of the 150 feet of vertical extension perforated in four 12 foot sections in the primary Bend shale target, the lower 12 foot section penetrated a sand interval. Therefore this section was not fraced to ensure that no frac energy was dissipated in the sand. Our re-entry program isolated the shale perforations and monitored a flow test of the shale over 4 days, while implementing a low pressure pipeline simulation at the surface. The results of this test proved very encouraging as the shale interval, while isolated from the sand, flowed at a consistent rate of 250MCFD of 1,400 BTU gas, with no noticeable production decline during the test. To meet pipeline BTU gas specifications the gas can also be stripped of 20 barrels of Natural Gas Liquids at the tap pipeline connection. This test also yielded 20 barrels of oil per day. In this well, the lowest perforation in the sand interval yielded 200MCFD of 1,400 BTU gas, with the same pipeline simulation pressures as the shale test. When successfully fraced, this sand interval could produce an additional 800-1,400MCFD.

Tyner has received permission from the Texas Railroad Commission to conduct a production test for a six month period, from the targeted shale production of the Stephens well. During this test Tyner will vent the gas produced and will strip and gather the Natural Gas Liquids ("NGLs") at the wellhead. Tyner has purchased the required equipment and initiated the production test in early November. Liquid production of 30-40 barrels of oil and NGLs is expected, which will provide Tyner with monthly revenue during the test.

The success of the re-entry of the Stephens well has encouraged Tyner to rework the Broseh well. An initial review has shown good gas flow in the well, even though it did not meet our frac specs. Tyner is evaluating remedial options for this well.

In addition, Tyner wishes to provide an update to the staged frac stimulation program of the Foster well. Perforation of the horizontal leg was conducted in stages and some difficulties were experienced in delivering the targeted propant to the formation. Frac stimulation of shale is a technical challenge in each basin. Completion activities will continue and may require refinement to deal with the characteristics of the Lower Bend Shale.

A new third party venture drilling program has been initiated in the Palo Duro basin with PetroGlobe Energy USA Ltd ("PetroGlobe") as operator. PetroGlobe's acreage is within the boundaries of Floyd, Swisher and Hale Counties in the Palo Duro basin. The most significant aspect of the initial four well program is that these are the first wells to be drilled underbalanced, thus minimizing formation damage and enhancing the economic potential of the basin. The first well, the McIntosh #1-77 located in SE Floyd County, West Texas, reached total depth in late October. While drilling through the Lower Pennsylvania shale and Granite wash sequence, gas was encountered. Testing of the first well in the program (McIntosh #1-77) is now underway. Tyner is encouraged by the location of the McIntosh #1-77 well as it is considered a core area of Tyner's 18,000 acre land position which surrounds the well on three sides. Drilling of the second well in Swisher County (Young #1-32) has now been concluded by PetroGlobe. While drilling through the Wolfcamp formation at approximately 5,800 feet, oil shows were encountered. During further drilling to target depth, lost circulation occurred resulting in wellbore instability. PetroGlobe made the decision to terminate drilling at that point and to log and case the well through the prospective oil zone. A service rig is being procured for perforation of the well and testing of this zone.

Based on the current results of new drilling in the Palo Duro basin, the Board of Directors of Tyner has reevaluated the Sentell Field Acquisition and has approved a resolution to withdraw from the joint venture. The decision was primarily based on the immediate cash call requirements of the Sentell Field drilling program, which required Tyner to advance US$2,000,000 for the drilling program, in excess of the US$730,000 already expended on the land acquisition program. Tyner has negotiated with the joint venture partners for a full recovery of funds advanced on the land acquisition program and to reallocate these funds to the Palo Duro basin. With current funds available Tyner is assessing the opportunities to drill a new well on Tyner acreage adjacent to the McIntosh #1-77 well and awaits testing results to confirm the acreage potential.

ON BEHALF OF THE BOARD

Paul Larkin, President

Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed and elsewhere in the company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward-looking statement.


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

Contact Information