Canadian 88 Announces Results of its Blackstone Well

Canadian 88 Energy Corp. has successfully drilled a significant deep natural gas well in Western Alberta. The well, located at 4-10-45-16W5 and drilled to a total depth of 4,788 meters (15,709 feet), is a major stepout into the prolific Blackstone Devonian Swan Hills gas pool. Canadian 88, as operator, has earned a 37.5 percent working interest in the well.

Drill and log results indicate 30 meters (98 feet) of highly porous dolomite gas pay, averaging 10% porosity analogous to other wells in the pool. The well, located 3 kilometers (1.9 miles) from other wells in the Blackstone pool, encountered the top of the gas pay 75 meters (246 feet) higher than any previous well. Further information will be available upon completion of the well, which is expected to be on production within six months.

"This well is a confirmation of Canadian 88's Swan Hills expertise and its strategy to complement a successful drilling program in established areas with high potential gas plays in the Alberta Foothills," said Joseph L. Pritchett, President and CEO.

The Blackstone pool, located 240 kilometers (150 miles) north-west of Calgary, was discovered in 1984 and has produced 404 bcf of sales gas from three wells to date and has an estimated 355 bcf of sales gas remaining. Two wells are currently on production in the pool, each producing at a rate of approximately 50 mmscf/d.