Habanero Reports Alberta Gas Strike

Habanero Resources Inc. said that it has been informed by the operator of the Cardium Burnstick Prospect (announced Dec. 29, 2005) that the well has encountered gas and flowed at a cumulative total of approximately 1.6 mmcf (million cubic feet of gas per day) during the 24-hour test just completed (final production levels may vary significantly from this number).

The well is now shut in for buildup, and it is expected to be tied in for sales by mid-August. Habanero has now earned an interest in the offset section. and follow-up locations are expected to be drilled sometime in the fourth quarter of 2006 or the first quarter of 2007. Habanero has a 10% working interest in this prospect.

“It is very exciting to have a new gas discovery and new source of revenue for Habanero,” said Jason Gigliotti, Habanero’s president. “When you couple this new gas discovery with the recent additions to our Alberta Oil Sands holdings, clearly these are times of growth for Habanero and Habanero's shareholders. At this time we are trading more than 65% below our recent high, despite now adding a new source of revenue and adding to our Alberta Oil Sands interests and being further along on these prospects. Add in the fact that oil prices are higher today, you can see why management is optimistic about the short- and long-term prospect of Habanero."

Habanero is an emerging junior oil and gas company focused on oil and gas exploration and production in North America. It is one of the smallest—if not the smallest—market-capitalized companies that has interests in five separate Oil Sands prospects, including now having exposure to approximately 55,000 acres of Oil Sands interests though its equity ownership in Andora Energy Corp. (a private company of which Habanero owns 700,000 shares). Habanero's goal is to become a mid-range oil and gas producer.