Winslow Resources Inc.
TSX VENTURE : WLR

Winslow Resources Inc.

November 10, 2006 08:05 ET

Winslow Provides Leader Development Plan and Operations Update

CALGARY, ALBERTA--(CCNMatthews - Nov. 10, 2006) - Winslow Resources Inc. (TSX VENTURE:WLR) ("Winslow" or "the Company") is pleased to provide the following operations update:

Leader, SK

Winslow drilling the final nine Phase 2 Milk River wells

Phase 2 of the Leader project is currently underway. Nine Phase 2 Milk River wells have been licensed to be drilled in the north-central part of the Leader property, and the drilling program has commenced. Three wells have been drilled, and surface casing has been set for the remaining six wells. Drilling is expected to continue within the fourth quarter. Following the conclusion of the drilling program, a fracture stimulation program will be conducted on the zones of interest for each well, subject to partner approved AFE funding.

Upon completion of this final phase of the drilling program, Winslow will have drilled a total of 26 wells on the property. The Company will have earned its interest in 47 contiguous sections of farmin lands, an additional 12 suspended Milk River gas wells, three sections of farmin lands and one deep suspended well bore under the terms of the Company's farmout agreements.

After evaluation of the drilling and test results of the nine Phase 2 wells, the Company anticipates drilling an additional three to eight wells in the north-central area of the property early in 2007.

Winslow to build pipeline infrastructure and gas processing facilities

The undertaking of surface leasing, crossing agreements, surveying for well locations, pipeline right of ways and facility locations has been an ongoing process since the second quarter of 2006. Due to the large project area and number of landowners, municipality districts and government agencies involved, the approval process has taken time. Permitting and government approvals are now underway and have been received for most of the infrastructure plan to date.

The acquisition of pipeline materials was initiated in the third quarter of 2006. Twenty-five kilometers of pipelines have been surveyed throughout the third and fourth quarters of 2006, and it is anticipated that Winslow will be initiating pipeline and facilities construction by mid-November, subject to weather conditions and receiving partner-approved AFE funds. Tie-point construction will be completed by TransGas at the closest sales gas pipeline in the fourth quarter of 2006.

The last component of the infrastructure development for this area is the gas processing facilities, of which there will be two sites. Facilities and compressor station design, equipping and construction plans were initiated in the third quarter. Procurement for compressors, ancillary equipment and instrumentation also began in third quarter and is nearly completed. Numerous design plans for the facilities have been generated and approved, and facilities construction has been initiated.

Over the past two years, Winslow has established cooperative relationships with a number of major shallow gas operators in the area and has been able to benefit from substantial feedback regarding efficient and cost-effective infrastructure planning.

"We are excited to be taking the final steps for completing our obligation at Leader, which will further the Company towards realizing the unconventional shallow gas potential of the property," says Winslow President John Nelson, noting that having infrastructure in place will give the Company the flexibility to economically pursue further development of the resource.

As many as 20 gas wells could be scheduled for tie-in upon completion of the partner- approved drilling program. Depending on the final number of initial gas wells being tied-in, it is anticipated the gas field may be capable of initial flush production rates on the order of 1.5 million cubic feet of gas per day. Given the long-life reserve potential, the Company is optimistic of economic growth from the project despite the short-term decline in natural gas prices. Ultimately, over 200 future well locations could be drilled on the property over the life of the project.

Pursuant to the terms of the Joint Venture Agreement that was signed with a private U.S. company in the second quarter of 2006 and revised in September of 2006, Winslow's 100 percent interest in the Leader project will be reduced to a 45 percent upon the full completion of the partner's CDN $5.2 million work commitment for drilling and infrastructure development. Winslow's interest will increase to 50 percent beginning 180 days from the start of initial production. Winslow will remain as operator of the project.

Chigwell, AB

Winslow to drill next coalbed methane well

Chigwell, Alberta has become the Company's second-ranked property due to the low risk and better than expected production from the Horseshoe Canyon coals. Although the Company has only two contiguous sections of land in this area, up to eight wells can be drilled on the property.

Winslow's first successful operated coalbed methane (CBM) well was drilled and completed at Chigwell in the fourth quarter of 2005. The well tested 95 thousand cubic feet per day (mcf/d) from the Horseshoe Canyon coals. A second CBM well was drilled by partners in the second quarter and completed in the third quarter of 2006. Sixteen coal seams in the second well were pressure tested and spinner surveyed for determination of individual coal seam production. The well tested 120 mcf/d from the Horseshoe Canyon formation.

Winslow has elected to participate with its partners to drill three additional Horseshoe Canyon CBM development wells at Chigwell. These long reserve life wells are expected to produce between 100 and 130 mcf/d and are anticipated to be spud in the fourth quarter of 2006. Winslow will have a 33 percent non-operating working interest in the wells.

The operating partner has drilled over 25 CBM wells within a three mile radius of Winslow lands and is currently undertaking a large-scale gas infrastructure development project for the area. Winslow considers participation with the partner upon completion of the project to be a strategic advantage for the Company in terms of future gas production and marketing at Chigwell.

Gadsby, AB

Winslow completes CBM test well

Winslow participated in a well testing the Horseshoe Canyon coals and Edmonton sands gas potential at Gadsby. The Company has a 50 percent non-operated working interest in the well, which spud June 27 and has subsequently been fracture stimulated in the Horseshoe Canyon and Edmonton Sand formations. A 48 hour flow-test from all perforated zones resulted in a stabilized rate of approximately 76 mcf/d, and further testing of the individual coal seams is underway. The well is close to existing infrastructure, and discussions to tie-in the well are underway with area pipeline and facility operators.

Wainwright, AB

Winslow to drill two Sparky oil tests

During the fourth quarter of 2006, the Company expects to drill two Sparky oil tests with working interests of up to 50 percent, subject to the successful completion of the current financing. The lands are situated on the perimeter of the extensive Wainwright oil pool. The nearest Sparky oil well within a one kilometer radius, which was drilled in 1993, had initial production rates of over 50 barrels of oil per day and has recovered over 60,000 barrels of oil to date. These long-life reservoirs have the capability to produce for 30 years or more.

An additional four locations may be drilled pending success of the first two wells and downspacing approvals.

Medicine Hat, AB

Monitoring continues

The Company's Sawtooth gas well at Medicine Hat continues to show good pressure buildups, but low flow rates. Swabbing will be conducted to remove water and completion fluids from the well bore in advance of continued pressure monitoring. The well was drilled during the second quarter of 2006 and has been completed and tested, and was determined to be capable of producing up to 300 mcf/d with water. The well is currently suspended due to factors which impact its economic viability at this time, including the lower potential gas rates in conjunction with the operational costs of water handling and distance from the pipeline.

The Company will retain a 50 percent working interest in the well before payout and a 30 percent working interest after payout. The Company has earned two sections of land on the property and has a rolling option on five additional sections. At this time, no further drilling is anticipated in this area.

Viewfield, SK

Renewed interest

Interest has been expressed in the Company's Viewfield property as a result of increasing activity and success involving the Bakken play within the area, and the Company is entertaining farmin offers on the property. Winslow has retained interests varying from 35 to 50 percent in six undrilled quarter sections. Currently, the three-leg horizontal well drilled by Winslow and partners in 2005 remains shut-in due to low rates of production.

Hairy Hills, AB

Capacity issues easing

The Company's central-Alberta well at Hairy Hills, which was tied-in during the second quarter of 2005, has been shut-in since July 2005 due to gas over-capacity at the competitor-operated facility. However, during the past two months the well has been allowed to produce up to 25 percent of its capability. The incremental production has added approximately seven net boe per day to Winslow. The Company has a 25 percent interest in the well. Surface landowner issues have now been resolved and an alterative pipeline is still being considered for the first quarter of 2007.

New Exploration, AB and SK

Leader, SK

As a result of industry exploration success in the Viking formation within four to six miles of the Leader property, Winslow has identified a potential deeper gas play trending on to its lands at Leader. Three of the recent wells in the area had initial rates of two to three million cubic feet per day. The Company's play has been generated internally and 2D seismic on the north end of the Leader property is being acquired throughout the fourth quarter to confirm mapped structures. Winslow is considering a Viking gas test in the first quarter of 2007 to delineate the potential deeper Viking gas play on trend in the Leader area, subject to successful completion of the current financing.

Kehoe, AB

3D seismic is to be acquired over a Mannville formation gas/oil play on a new area for Winslow in southern Alberta. Terms of the farmin and seismic option allow Winslow to earn all rights in 25 to 50 percent of three sections upon completion of the 3D seismic program, which will be finished before year-end. It is anticipated that one to three drill locations may be generated from the 3D seismic interpretation.

Website

The WLR website, www.winslowresources.com, has been updated to include a map showing the location of new wells, facilities and gas gathering system.

Disclaimer: Certain information set forth in this document, including management's assessment of Winslow's future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Winslow's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. 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. Winslow's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements. No assurance can be given that any of the events anticipated will transpire or occur, or if any of them do so, what benefits Winslow will derive from them. Winslow disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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

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