Patch Set to Begin Oil Sands Work Program

Patch International Inc. said that a work program is about to commence on one of its Alberta oil sands properties held in the Patch Oilsands Limited Partnership in which PTCH is a 75% majority partner. The initial program will consist of a seismic survey over the property to be followed by a test well drill program, to help determine the size and commercial viability of the indicated contingent oil sands resource on the property.

On August 9, 2006, the company reported that the partnership had received a reserve report that showed a contingent resource potential of 59 million barrels (high) to 23 million barrels (low) across all five sections in which the Partnership has an ownership interest. A contingent resource is defined as those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from known accumulations, but which are not currently considered to be commercially recoverable. This initial program will cover one of the five sections included in the report.

During 2006 PTCH and the partnership have added eight new oil sands leases (comprising 12 sections) in the Athabasca oil sands region of Alberta, to its original oil sands lease at Leismer. This includes the five new leases (comprising 8 sections) announced yesterday acquired directly by PTCH and which are contiguous or close to some of the existing oil sands holdings held in the partnership.

PTCH's and the partnership's oil sands properties include sections that are well located in a producing area in the Athabasca oil sands and that are in very close proximity to major oil sands projects by Petrobank, Encana, ConocoPhilips, North American Oil Sands and Petrobank's Whitesands Oil Sands Project, an experimental in situ "SAGD" (Steam Assisted Gravity Drainage) facility. Other sections lie southwest of the announced Royal Dutch Shell Plc Oil Sands leases.

According to the Alberta Department of Energy the oil sands of Canada hold recoverable reserves of 175 billion barrels with a proven reserve life of 480 years and another 130 billion barrels of potential reserves which is second only to Saudi Arabia's 262 billion barrels. Canada is in an optimal position to supply oil to the U.S. with its favorable political climate, close proximity and because Canada with its oil sands is one of the few non-OPEC countries which can grow its oil production.

PTCH is a junior oil and gas company that currently earns oil revenue from a participation interest in 22 oil wells in Saskatchewan and Alberta, Canada. These interests provide the company with some limited cash flow. PTCH is currently engaged in a number of oil and gas exploration projects at various stages in British Columbia and Alberta, Canada. In addition Patch has oil sands property interests in the heart of the Alberta oil sands, through a 75% majority ownership of Patch Oilsands Limited Partnership and through its own direct ownership.

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