Habanero has entered into an agreement to purchase an equity interest in a private company that controls over 10,000 acres of land in the Peace River Oil Sands region of Alberta, Canada (news release November 17, 2005). According to a 51-101 compliant reserve report current possible and probable barrels recoverable are 111,300,000. 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 an 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 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, "We feel that the oil sands is the future of oil and gas in North America and to have a piece of it is the most important asset Habanero can have to build the company as well as increase shareholder value. As it stands now, we are one of, if not the smallest market capitalized companies that has exposure to the billion dollar Alberta oil sands. When you factor in that we have no debt, cash in the bank, a revenue stream, and conventional drilling expected to commence early in the first quarter of 2006, we feel that this upcoming year will be a watershed year for Habanero, as we strive to achieve our goal of becoming a mid range oil and gas producer."
Habanero is an emerging junior oil and gas company that has interests in the world-class Alberta oil sands and with a focus on high reward, low risk conventional 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.
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