One Exploration, EnCana Form Peace River JV

One Exploration Inc. said that it has cased its first two exploration wells in the Peace River Arch area of Alberta and has entered into a multi-well Farm-in Joint Venture with EnCana Corporation ("EnCana").

Details of the farm-in agreement are as follows:

The farm-in lands comprise approximately 488 sections (312,320 acres) of undeveloped Provincial crown land located between Townships 69-73 and Ranges 2-9 W4M, approximately fifty kilometers northeast of Lac La Biche, Alberta, and falling within the boundaries of the Cold Lake Air Weapons Range. The Corporation has committed to drill nine wells ("Earning Wells") to a total depth of 610 meters subsurface to evaluate the hydrocarbon potential of the Viking, Colony, Clearwater, and McMurray formations.

The Corporation has also committed to the fracture stimulation of one additional well owned by EnCana. The Corporation is responsible for 100% of all costs associated with the Earning Wells through tie-in to earn a 65% interest in the farm-in lands. The initial nine Earning Wells and fracture stimulation will earn 78 sections (49,920 acres) of land. The farm-in lands are due to expire in December 2007, however, with success the Corporation does have the ability to apply for the continuance of the lands beyond the original expiry date.

Rights to the remaining 410 sections of available land can be earned through a rolling option providing the Corporation with the ability to earn an additional six sections of land for each additional well drilled. These lands are also due to expire in December 2007.

In addition, the Corporation will have access to approximately 6,000 kilometers of seismic data.

Operations update:

During the fourth quarter of 2006 the Corporation drilled two wells in the Peace River Arch area of Alberta. Both wells have been cased and completion operations on both wells shall commence in late January or early February, 2007.

About One Exploration Inc.

One Exploration was continued into Alberta from Ontario in November 2006 and intends to participate in oil and gas exploration, development and production in Western Canada. Highlights to date include:

  • Closed an Initial Public Offering of $12,000,000 on November 28, 2006, and began trading on the TSX Venture Exchange under the symbols OE.A and OE.B on December 19, 2006;
  • Closed a private Placement for proceeds of $1,250,000 on December 4, 2006;
  • Closed the acquisition of 1243908 Alberta Ltd. which owned assets in the Peace River Arch area of Alberta on December 11, 2006, and
  • Commenced drilling in the Peace River Arch area on the previously announced Shiningbank Farm-in Agreement.

The Board of Directors approved the 2007 capital budget, totaling $12.4 million. During the first quarter of 2007 the Corporation plans to drill nine wells and fracture stimulate one well on the EnCana farm-in, drill two wells in the Peace River Arch area and conduct a re-entry operation in the Peace River Arch.