Habanero Increases Interest Stake in Oil Sands Prospect in Alberta, Canada

Alberta Oil Sands, Peace River
(Click to Enlarge)
Habanero Resources has increased its equity interest in a private company that controls over 10,000 acres of land in the Peace River Oil Sands region of Alberta, Canada. According to a 51-101 compliant reserve report completed by DeGolyer and MacNaughton of Calgary on September 1, 2005, the current possible and probable barrels recoverable are 111,300,000 (gross estimate). The property is very close to infrastructure including roads and power, as well there is a pipeline running directly through the property. There is likely a supply of condensate in the area for treating and blending for pipeline sales. The Company is planning a pilot plant for testing the recoverable reserve via Steam Assisted Gravity Drainage (SAGD) and the Company plans to file application to AEUB for the pilot plant during the 1st quarter of 2006. The Company plans to drill two additional wells as part of its current program and will undertake a 3-D seismic survey of the lands that will enable the Company to re-assess the size and extent of its reserves and administer its pilot project. At this time Habanero has increased its interest to 2.5 percent. At this time Habanero has taken an equity interest in the Company, but Habanero may have the option to participate in the development and exploitation of the prospect in the future.

Jason Gigliotti, President of Habanero Resources stated, "This oil sands project has the largest potential of any project that Habanero has been involved in. For us to increase our interest in this project demonstrates how serious we are in attaining our goal of becoming a mid-range oil and gas company. At this time, Habanero has one of, if not the smallest market capitalization, of any public company that has exposure to the multi-billion dollar oil sands of Alberta. When you couple this with the fact that we currently have no long-term debt and cash in the bank for new drilling or acquisitions, we feel that the next few months could be the most influential in terms of Habanero's future growth. These are very exciting times for Habanero."

According to the Canadian Association of Petroleum Producers web site, "Production from Canada's vast oil sands reserves now exceeds 1 million barrels per day and is forecast to increase to 2.7 million barrels per day by 2015. Reserves exceed 175 billion barrels of economically viable oil. With current technology, Canada's oil sands are second only to Saudi Arabia in global oil reserves. Capital spending on both in situ areas (too deep to mine) and mining projects in the oil sands totaled more than $28 billion US from 1996 to 2004. Canadian companies will spend close to $7 billion US on oil sands capital investment in 2005. There are close to 35 projects in the planning or expansion process."

Habanero has also now attained a fully quoted USA listing. Habanero will now show real-time live bid and ask quotations under the symbol HBNRF. At this time, the real-time trades that occur will be posted at the end of the trading day in accordance with NASD rules. Habanero now is trading on three major markets in North America and Europe. These new listings cause no additional dilution to Habanero. They only provide additional markets to trade Habanero's shares on, for individual and institutional investors, which may be better suited for them.

Habanero is an emerging junior oil and gas company focused on high reward, low risk oil and gas exploration and production in North America. Habanero's goal is to become a mid range oil and gas producer. Habanero currently earns oil and gas revenue from 15 wells located on multiple oil and gas fields located in Texas, Saskatchewan and Alberta.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Environmental Chemist
Expertise: Chemical Engineering|Environmental Engineer
Location: Kennesaw, GA
Petroleum / Facilities Engineering Specialist - Offshore
Expertise: Petroleum Engineering
Location: Houston, TX
Petroleum Engineer
Expertise: Petroleum Engineering
Location: Houston, TX
search for more jobs

Brent Crude Oil : $51.38/BBL 2.44%
Light Crude Oil : $50.43/BBL 2.26%
Natural Gas : $3.14/MMBtu 0.94%
Updated in last 24 hours