Canoro Drills Amguri 12 and Completes Borkathani Well

Canoro Resources Ltd. began drilling the Amguri 12 appraisal well with a new triple drilling rig on the Amguri Development Block in Northeast India. The Company has also finished operations on the Borkathani exploration well with the shallow drilling rig on the AA-ON/7 Exploration Block.

In regards to the AA-ON/7 Block, the Company did not find any commercial reserves at Borkathani after completion of testing operations and will abandon this exploration well. Canoro is planning to drill a Dergaon appraisal well in the fall of 2008 to further determine the commerciality of the Dergaon gas discovery. Land for this well location has been acquired with lease building activities to begin in the fall. This shallow well is located approximately 1.4 km from the original discovery well.

Canoro plans to move the large triple drilling rig early in Q1 2009 to drill the large Naga Hills sub-thrust exploration prospect in AA-ON/7, subject to necessary approvals.

In regards to the Amguri Block. Canoro has commenced drilling operations for the A-12 appraisal well. The well is being drilled from the A-12 surface pad, which can accommodate additional proposed development locations. The A-12 well is the first well of several locations identified to be evaluated as part of the 2008-2009 drilling campaign. This well will test a structurally high portion of the Barail formation and will also be drilled to basement to test for possible hydrocarbons in the Basal Sandstone formation.

The shallow drilling rig will return to Amguri field to install artificial lift at Amguri 5 to return this oil well back to production, followed by a completion of the oil zone in Amguri 13B. Canoro plans to have these additional oil wells producing prior to year-end. Current net production from the Amguri field continues to be in the 1,000 to 1,100 boe/d range.

On the AA-ONN-2003/2 block, the acquisition of the 100 km2 3-D seismic program is complete and the data is currently being processed. So far, four drilling locations have been identified and selected, with the remaining commitment wells to be identified on review of the new 3D seismic data. Commencement of drilling operations is anticipated in the first quarter of 2009, pending regulatory approval.