Canoro Successfully Tests Oil at Amguri 5 Well

Canoro Resources has successfully completed remedial operations and testing on two intervals (2,890 - 2,893 and 2899 - 2902 meters of depth) of an oil producing zone in the suspended Amguri 5 oil well in India. The zones have now stabilized at a rate of 588 bbls/d of 42 degree API oil at a flowing pressure of 1,150 pounds per square inch with 0.8 mmcf/d of associated gas through a 10 millimeter choke.

Canoro is focusing on generating cash flow as quickly as possible from the Amguri field. Initial production rates will be determined by existing facilities, with full production rates realized once additional infrastructure (e.g. a pipeline) is put into place in the future.

Canoro will begin moving the rig to the Amguri 6 well for re-entry and testing operations. The Amguri 6 well is the highest existing well on the structure, while Canoro believes that the top of the structure still remains undrilled.