Drilling Delayed At Amguri, Logging To Come

Canoro Resources reported that drilling operations at the Amguri 13 well have proceeded as planned and the well has reached a depth of 3,027 meters into the main Barail formation. In preparing the well for logging, the rig encountered hydraulic system issues, which has delayed drilling operations by approximately two weeks. The problem has now been fixed and logging of the well is expected shortly.

The 1,500 HP drilling rig for Amguri 12 is expected to arrive at Amguri prior to the end of April, with drilling of Amguri 12 expected to begin by mid-May. The Amguri 12 well is planned to target the structurally highest part of the Barail reservoirs and test the deeper potential below the Barail down to basement.

The facility constraints at Amguri have been partially alleviated with the completion and commissioning of the new 10" sales gas line from the production facilities. The company continues to de-bottleneck other facility constraints to allow increased production from the wells.

The location for the Borkathani exploration well has been prepared, the conductor pipe preset and ready for drilling. This will be the next location for 850 HP rig following the drilling of Amguri 13. This 1,500m well is planned to test the Cretaceous gas structure believed to be connected to the Dergaon gas discovery.

The 40 km 2D seismic acquisition over the anticline and sub-thrust prospects on the block is nearing completion. The information will be processed and interpreted over the summer and fall, with drilling expected to begin late this year or early into 2009 on these prospects.

The 100 km2 3D program is well underway with completion anticipated prior to the monsoon season. Drilling of the first exploration well on this block is anticipated to begin late this year.

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