Onco Petroleum Launches New Drilling Program

Onco Petroleum Inc. reported that it is launching its next phase of drilling operations at its Tilbury Field properties in southwestern Ontario. Having received the necessary government approvals to drill the first well of a planned multi-well drilling program, the Company has mobilized a drilling rig and drilling results are expected over the next month.

Previous phases of the Company's drilling activity spanned the period of 2003 to 2005, during which 13 wells were drilled. These wells were classified as "Potential" and are the subject of an ongoing detailed evaluation to confirm their commercial viability; of these wells, one well (Onco #28) has been plugged-back and a shallower gas-bearing zone was perforated and another well (Onco #22) will undergo testing as a potential water disposal well.

The current phase of drilling activity follows an exhaustive review and re-interpretation of the Company's seismic data in the Tilbury Field. This phase's first well is targeting potential natural gas in the Silurian-aged Guelph Formation reservoir in an undrilled portion of the field. The Company believes that this seismically-defined feature has substantial upside potential.

This multi-well program includes the drilling of prospects at the Guelph Formation level and the drilling of deeper, previously-untested structures. The deeper prospects include potential oil trapped in the Ordovician-aged Trenton/Black River formations and deeper Cambrian-aged rocks. The Trenton/Black River prospects at Tilbury are related to the types of structures where conditions might have been favorable for the development of high-quality hydrothermal dolomite (HTD) reservoirs. These types of HTD reservoirs are recognized as prolific oil and gas producers in southwestern Ontario, Michigan, and New York State.