Westchester Resources Inc.
TSX VENTURE : WSR

Westchester Resources Inc.

November 02, 2005 08:18 ET

Westchester Commences Production and Updates Operations in Manitoba

TORONTO, ONTARIO--(CCNMatthews - Nov. 2, 2005) - Westchester Resources Inc. (TSX VENTURE:WSR) ("Westchester" or the "Company") announced that it has successfully completed the initial drilling program in the Daly Field in Manitoba. The Company participated in three horizontal wells, each encountering four potential productive zones in the Lodgepole and Bakken formations. Westchester has been informed by its operator, Aspen Group Resources Corp. (TSX:ASR) ("Aspen") that construction and tie-in of the temporary surface gathering facilities for the two productive wells (the 16-10 and the (2) 16-10), consisting of two production tanks per well, have been completed as scheduled. Following construction of the temporary surface facilities, the wells were put into production using tubing pumps at a nominal cumulative rate of approximately 80-100 barrels of oil per day (bopd) and monitored to determine optimum pump size. Engineers are currently working to properly size the pumps to handle the high water volumes that are typical in the Daly field and increase production rates to a higher stabilized output level. During the monitoring process, production from the wells is being sold at Cromer referenced pricing (September 2005 price of $75.05/barrel).

The Daly Field acreage offers Westchester a very compelling development opportunity. Utilizing horizontal drilling, the Company can explore up to four prospective zones from each well location. Combined with the economic incentives Manitoba provides, the multiple drilling targets are expected to provide Westchester the ability to grow its reserves and production through an efficient, concentrated drilling program.

Westchester owns a 50 percent working interest in the Manitoba leases through its Joint Venture Agreement (the "Joint Venture") with Aspen. The Joint Venture currently holds the rights to 7 leases totaling approximately 2200 acres in the Daly Field. Consulting geologists estimate that the leases contain approximately 25 additional drill locations. Each surface location has the potential to accommodate up to four horizontal wells. The Joint Venture is consulting with Trimble Engineering Associates Ltd. to prepare a resource report estimating the productive potential of the wells, and a drilling program in order to further develop the acreage.

A summary of each well is provided below.

16-10 Well

The 16-10 well (located on the 16-10-009-28W1M surface lease of well location 12-10) was drilled to measured depth of approximately 1600 meters. The horizontal portion was drilled in the Middle Daly zone of the Lodgepole formation. The well was swab tested over a four-hour period at a rate of 332 bpd and is expected to produce at a higher stabilized rate once the pumps are properly sized and installed. The well is producing 33 degree API medium crude.

10-30 Well

The 10-30 well (located on the 10 - 30 - 009-28W1M surface lease of well location 15-30) was drilled to measured depth of approximately 1220 meters. The horizontal portion was drilled in the Middle Daly zone of the Lodgepole formation. During the drilling of the horizontal leg, the well encountered a fracture in the formation at approximately 995 meters. The fracture has caused higher than expected water inflow in the well during initial clean up. The well was shut-in for a period of 24 days and a second attempt to swab and test the well was undertaken. The well continued to produce predominately water and was shut-in. The Company is currently evaluating several options, including re-entering the well and drilling a second leg in the same zone or in one of the other three zones encountered in the vertical portion of the well bore.

(2) 16-10 Well

The (2) 16-10 well (located on the16-10-14-11-9-28W1M lease of well location 14-11) features two horizontal legs drilled from a single vertical well. The first leg was drilled to measured depth of approximately 1684 meters. The second leg was then drilled to a measured depth of 1617 meters. Both legs were drilled in the Lodgepole formation. The additional leg is expected to provide more efficient drainage of the reservoir. The well was swab tested from the lateral junction of the first and second leg over a four-hour period at a rate of 184 bpd and is expected to produce at a higher stabilized rate once the pumps are properly sized and installed. The well is producing 33 degree API medium crude.

Westchester also announced that it has terminated its option to earn a 100% interest in the Satterly Lake property subject to a 2% royalty that it acquired on May 14, 2003 in exchange for $12,000 and 35,000 common shares.

Westchester Resources Inc. is an independent oil and gas exploration company. Westchester's operations are focused in Western Canada and the US. The Company's shares trade on the TSX Venture Exchange under the symbol "WSR".

Forward Looking Statements - Certain information regarding Westchester set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Westchester's control, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of reserve estimates, currency fluctuations and exploration risk. In addition, there can be no assurance that the flow rate estimated herein can be maintained with the testing conducted. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

The TSX VENTURE EXCHANGE has neither approved nor disapproved the contents of this press release.

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