SOURCE: Wilon Resources, Inc.

February 01, 2007 08:45 ET

Wilon Resources, Inc. Announces Initial Reserves Report

CHATTANOOGA, TN -- (MARKET WIRE) -- February 1, 2007 -- Wilon Resources, Inc. (PINKSHEETS: WLON), an energy company engaged in the production of natural gas, today announced the results of an independent analysis of the Company's reserves by Steven P. Kohler, an Engineering Consultant based in Williamsburg, MI. The analysis covers the Company's 12,000 net acre leasehold block in Wayne County, West Virginia.

The reserve report estimated the Company's gross reserves of natural gas within the Trace Fork area of Butler County, West Virginia at 37.5 BCF. Of this, 25.0 BCF is proved and 12.5 BCF probable. In addition to the reserves sited above, the analysis further expanded upon potential natural gas reserves within the Devonian Shale and McKenzie/Keefer Formation. "If the Devonian Shale underlying Wilon Resources' acreage were to be developed with 80-acre spacing, this would require 150 wells. Using the derived Wayne County recovery factor of 411 MMCF/well, they would recover 61.6 BCF of gas reserve. The entire Wilon leaseblock appears highly favorable for Devonian shale gas production." In reference to the deeper McKenzie/Keefer formation, the analysis states," Total potential gas reserves are estimated at 67.8 BCF." The report goes on to further state," Numerous stratigraphic horizons appear highly prospective for hydrocarbon exploration in the Wilon project area. Of these, the Devonian shale, McKenzie, Trenton/Black River, and Knox appear most favorable for future exploratory efforts."

Conservative in-ground pricing of the reserves at $1.00/mcf estimates a value of $37,500,000. Using $6.00/mcf as in our forecasts, the reserves have a future gross revenue value of $225,400,000.The sum of the potential gas reserves within the Devonian shale and McKenzie/Keefer Formation equals 129.4 BCF, with an in ground value of $129,400,000. The leasehold block has the potential for future gross revenue of over $700,000,000 when all of the Company's targeted formations are included.

Harry Thompson, President stated, "We are very pleased with the findings of the reserve report as it stands. This is just the latest successful step in the Company's development efforts over the last year. However, we feel that deepening some of our existing wells could potentially prove up additional reserves. As we continue to execute our business plan, we expect to see significant production growth as we proceed through our current drilling program."

About the Devonian Shale

Devonian Shales occur predominantly in the Appalachian, Illinois, and Michigan Basins. The shales formed approximately 350 million years ago. Natural gas formed within the shales when organic rich muds and silts were buried combined with time, high pressure, and varying temperatures. The low permeability of the Devonian shale prohibited most of the gas from escaping thus acting as the source or reservoir for the gas. A relatively recent U.S Department of Energy study evaluating the Devonian shale potential of West Virginia concluded that several areas of the state remain highly prospective for Devonian shale production. Production within the Devonian shales is largely controlled by the occurrence of intense natural fracturing within a uniformly gas-saturated shale sequence.

About the McKenzie Formation/Keefer Sandstones

The Keefer sandstone originated as a shallow shelf, blanket sandstone. It extends over 100 miles from the presumed source in Virginia and exhibits a generally uniform thickness of 30-50 feet.

About Wilon Resources, Inc.

Wilon engages in the exploration, production, and delivery of natural gas. The company has successfully drilled or reworked sixty-five natural gas wells and plans to complete a number of new wells during the next twelve months. Its operations are in the Appalachian Basin centered around West Virginia and Kentucky on leaseholds that aggregate approximately 12,000 acres.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this action may be identified through the use of words such as "expects," "will," "anticipates," "estimates," "believes" or statements indicating certain actions "may," "could" or "might" occur.

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