Canoro Signs Arunachal Pradesh Production Sharing Contract

Canoro Resources has signed a Production Sharing Contract with the Government of India on the previously awarded NELP V AA-ONN-2003/2 exploration block in Arunachal Pradesh, northeast India. The 295 square kilometer block is approximately 2.5 kilometers from the producing Kharsang oil field and approximately 150 kilometers northeast of Canoro's exploration and development blocks in Assam.

The block has an initial seven-year exploratory period, broken into three phases, followed by a 20-year production term for any commercial discoveries. The first exploratory phase includes a minimum work commitment of 200 kilometers of 2-D and 100 square kilometers of 3-D seismic acquisition and seven exploration wells of varying depths between 2,000 and 4,000 meters over the next three years.

Canoro (30%) and its consortium partners, (Geopetrol International Inc. of France - 30% and NTPC Limited, a large Indian government power company - 40%), expect to begin seismic work after the Petroleum Exploration License is issued by the Arunachal Pradesh state government. Geopetrol is the operator of this block and has been jointly operating the neighboring Kharsang oil field since 1995.

Canoro is a Canadian-based international oil and gas company operating in the prolific Assam/Arakan basin of northeast India. The Company is re-entering and testing a number of wells with the objective of restoring production from the suspended Amguri oil and gas field. Canoro is the operator of Amguri and has a 60% working interest. Canoro is the operator with a 65% working interest in the 1,445 km2 AA-ON/7 exploration block, and has a 30% non-operated working interest in the 295 km2 AA-ONN-2003/02 exploration block. Common shares of Canoro trade on the TSX Venture Exchange under the symbol 'CNS'.