Winslow Resources Inc.

Winslow Resources Inc.

March 31, 2005 12:24 ET

Winslow Signs Major Shallow Gas Farmin Agreement

CALGARY, ALBERTA--(CCNMatthews - Mar. 31, 2005) - Winslow is
pleased to announce that it has entered into a large-scale farmout
agreement with a major oil and gas company covering 44 contiguous
sections of land to explore for and develop widespread, multi-zone,
shallow gas in west-central Saskatchewan. The properties are located
near Leader,
Saskatchewan in an area of active shallow gas drilling activity eight
kilometers west of the prolific Abbey/Shackleton Milk River gas pools
and sixteen kilometers north of the giant Hatton Milk River gas pool.

Winslow has agreed to drill twelve wells to test the Milk River formation
prior to June 9, 2005 to earn a 100% interest in eighteen sections and
a 75% interest in six additional sections of land. After completion of the
first drilling phase, the Company then has the option to drill an
additional twelve wells to earn the balance of the farmin lands at up to
100% interest on nine sections and 75% interest on eleven additional
sections, as well as earn twelve existing shut-in Milk River gas wells
on the properties. The 100% and 75% working interest lands will be
subject to a five percent (5%) and a ten percent (10%) non-convertible
overriding royalty to the farmor, respectively. The Company also plans to
negotiate similar farmin terms on the remaining interests within the 75%
interest group of lands to ideally bring Winslow's total interests up to
100% in all forty-four sections upon completion of the second drilling

Winslow will have also earned a 50% interest in all deeper P&NG rights.

The drilling program is strategically located to hold any expiring lands
and to adequately evaluate the Milk River potential of these lands. If
results upon completion of the first drilling phase look promising, the
Company will continue into the second drilling phase during the third
quarter. Encouraging results upon completion of the second drilling phase
would initiate an extensive development plan over the earned acreage position
requiring the drilling of 50 or more additional wells in 2006 and building
the necessary gas production infrastructure. A pipeline is favorably situated
across the southern end of the acreage block and would provide a starting
point for future expansion.

Winslow is excited to participate in what is a widely growing gas resource
development play in Saskatchewan. This large land base will provide a solid
platform of future growth for the company and fulfill our growth objectives
to focus on building a base of production through long reserve life, low risk
drilling opportunities which includes unconventional gas plays such as
coalbed methane and shallow multi-zone gas reservoirs.

Winslow trades on the TSX Venture Exchange under the symbol "WLR" and has
22,515,899 common shares issued and outstanding.

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

Contact Information

  • Winslow Resources Inc.
    John Nelson
    Interim President, Vice-President, New Ventures
    (403) 355-1175