Canoro and ONGC Conclude Evaluation of Nagaland Work Program

Canoro Resources and ONGC have concluded the technical evaluation and reached mutual agreement under the Joint Study Agreement for the initial work program to be conducted on the six Nagaland blocks. The initial work program provides for a reactivation of the Changpang oil field and 2D and 3D seismic acquisition on the five exploration blocks. A regional socio-economic study in the areas affected by the six blocks has also been conducted, while an environmental study of the Changpang field is anticipated to be completed by the middle of September.

Discussions on possible ways for implementing the recommendations contained in the Joint Study will commence during the second half of August.

Seismic Processing and Interpretation Update

In addition to the planned activity on the ONGC blocks in Nagaland, the recently acquired 2D seismic on the AA-ON/7 (140 km) and AA-ONN-2003/2 (220 km) exploration blocks is being processed. Both of these seismic surveys evaluate the same fold and thrust geological environment as the Nagaland exploration blocks.

The results, while preliminary, indicate several prospective independent structures across the sub-thrust belt in both exploration blocks. The processing, interpretation and final prospect generation on our AA-ON/7 block is planned to be completed in September. Once complete, we expect to recommend to our partners and the Government of India to drill in this area.

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.