Canoro Successfully Tests Amguri Number 6 Well

Canoro Resources has successfully completed remedial operations and initial testing of the Amguri 6 well. A 19 meter interval from 2,866 to 2,885 meters was recompleted and tested. The well's initial production has been estimated to be at a rate of 175 bbls/d of 56 degree API oil (condensate) at a flowing tubing head pressure of 2,450 pounds per square inch with 1.75 mmcf/d of associated gas through a 6 millimeter choke. There is no water production evident from the testing performed at this well. The existing testing equipment on site can not safely handle the well's large capacity and content, delaying final testing until additional equipment is available.

In light of success at Amguri 5 and 6, Canoro is examining the possible re-entry of Amguri 2, a prematurely abandoned well. The well has exhibited hydrocarbon potential based on open hole log data, test results and drill cuttings.

The results of the re-entries to date, combined with the reprocessed seismic, are validating Canoro's geological model that indicates there are additional development locations in the Amguri field. To complete this validation however, Canoro has proposed that a 3-D seismic survey be conducted over the entire field during the first quarter of 2006. With this data and the workover results, Canoro will be in a position to determine the most effective development plan for the field.

In addition, to quickly generate cash flow from the Amguri field, the wells with production potential are planned to be initially produced early in the new year through temporary well site facilities. Full production rates should be realized once additional pipeline infrastructure is in place, expected during the second quarter of 2006.