Canoro Logs Oil Pay at Amguri 11

Canoro Resources has completed three of five tests in the Amguri 11 well. To date, two new reservoirs have been confirmed with another zone and the main Barail reservoir still to be evaluated.

First New Commercial Reservoir

The newly discovered mid-Barail reservoir was successfully tested through an eight-meter perforation. This new reservoir flowed at a clean-up test rate of approximately 280 bbl/d of condensate and 2.1 mmcf/d of natural gas through a 16/64-inch choke with tubing head pressure of 2,500 psi. This new reservoir, at 200 meters below the Main Barail Sand, has an 11-meter pay zone that is two meters thicker than originally reported. This equates to approximately 630 boe/d.

Second New Commercial Reservoir

A seven meter interval, approximately 10 meters below the base of the Barail Main Sand, was perforated and flowed at approximately 180 bbl/d of condensate and 2.5 mmcf/d of natural gas through a 16/64 inch choke with tubing head pressure of 2,200 psi. This equates to approximately 600 boe/d.

Remaining Testing

An additional seven-meter interval, approximately 20 meters below the Barail Main Sand, is planned for perforation and testing shortly.

Lastly, we plan to test the previously reported 36-meter known Main Barail sand, with results expected shortly thereafter.

Basal Sandstone and Basement Results

The Basal Sandstone, at approximately 3,900 meters, was tested and flowed non-commercial quantities of natural gas and water.

We are planning the Amguri 12 appraisal location to test what is anticipated to be a structurally higher position in all reservoirs approximately 1,200 meter to the southwest of Amguri 11.

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.