Canoro Begins Drilling on NE India Block

Canoro Resources Ltd. began drilling operations over the weekend at the Dolakharia exploration location on the AA-ON/7 exploration block in northeast India. This well is planned to test a large seismic amplitude anomaly in the Tipam formation, plus a number of secondary deeper targets. The well is to be drilled to an approximate total depth of 1,700 meters, down to basement. After completion of the Dolakharia well, the drilling rig is planned to move to Amguri to directionally drill Amguri 10B.

Amguri Update

All information from the suspended well Amguri 10A has been gathered, processed and analyzed. The rock velocity information around the main fault has been updated, significantly explaining the unexpected results seen in Amguri 10A. The additional information further reconfirms the majority of the original mapping and geological model of the Amguri field.

Based on this additional information, a new target location in the producing Barail formation for the well Amguri 10B has been selected, approximately 500 meters from the producing well Amguri 6. To reduce costs, the first 1,600 meters of the existing Amguri 10A well bore will be used and then directionally drilled to the new Barail target.

Canoro is a Canadian-based international oil and gas company operating in the Assam/Arakan basin of northeast India. Canoro is the operator of Amguri field with a 60% working interest. Canoro is the operator with a 65% working interest in the AA-ON/7 exploration block. Canoro also has a 15% non-operated working interest in the AA-ONN 2003/2 exploration block.