Canoro Says South Jorhat 1 Exploration Non-Commercial

Canoro Resources has completed drilling and testing its first exploration well, South Jorhat 1. The well was drilled to a total depth of 2,428 meters (8,012 feet) into basement to evaluate a basement fault block structure.

The well encountered oil and gas shows in five separate formations, and was tested in three of those formations. None of the tested formations showed economic quantities of hydrocarbons. The well has been abandoned.

Block AA-ON/7 contains a number of exploration leads from three different geological play types. A follow-up 2-D seismic program on AA-ON/7 is scheduled to begin early next year to evaluate these leads with the objective of maturing a second exploration well for late 2006 or early 2007. The analysis and decision regarding Canoro's next drilling location on this block will take into account a careful review of the new information from South Jorhat 1.

The drilling rig is now being moved to Canoro's Amguri development block to re-enter the suspended Amguri 5 and Amguri 6 oil wells. Canoro expects to re-establish oil production from these wells.

NELP V Update

Canoro understands that India's Cabinet Committee on Economic Affairs has approved the award of the AA-ONN-2003/2 block to Canoro (30%) and its consortium partners (Geopetrol International Inc. - 30% and operator, National Thermal Power Corporation - 40%). The 295 km2 block is 2.5 km from the producing Kharsang oil field, which Geopetrol jointly operates, and is approximately 150 km northeast of Canoro's exploration and development blocks in Assam. Formal notification of the award to Canoro is expected shortly, following which Canoro will provide additional information for this block.