Geocan Energy Wins Appeal for Czech Exploration License

GEOCAN Energy Inc. together with its working interest partners, have successfully challenged, by appeal, a previously approved transfer of the Breclav Exploration License. In a final decision issued by the Czech Minister of the Environment, the previous approval of the transfer by Ceska Naftarska Spolecnost has been overruled.

In addition, the Czech Ministry of the Environment, in a separate proceeding respecting the issuance of a production license for the Breclav Block, has expressed the opinion to COC, GEOCAN and its working interest partners that "a settlement of ownership relations of (COC) towards its foreign partners ... shall be necessary for further proceedings". GEOCAN and its working interest partners are continuing with all judicial and regulatory proceedings as well as through diplomatic means to assert their ownership rights in and to the Breclav Block and the Postorna 1 well located thereon.