News.HABANERO RESOURCES INC.
Suite 990 -1500 West Georgia Street
Vancouver, BC V6G 2Z6
Telephone: (604) 692-3230
Facsimile: (604) 632-9849
June 26, 2002 Trading Symbol: HAO: TSX Venture Exchange
MAJOR OIL AND GAS TARGET SCHEDULED TO BE TESTED TOMORROW
Habanero Resources Inc. (the "Company") is extremely pleased to report that
the operator has notified HAO that the crews for the frac have been
mobilized onto the property and the frac is scheduled to occur tomorrow.
Based on all the data gathered from other existing wells and operators the
decision was made to test the Mississippian formation. This formation is
primarily an oil target with a substantial amount of gas expected. Both the
oil and gas shall be tested simultaneously. This formation is the bottom of
the well, therefore logistically it is the most beneficial to test first.
Existing fraced wells in the area flowing from the Mississippian have
produced in excess of 400 barrels of oil and approximately 1 million feet of
gas per day. At current market prices gross revenue for one well flowing 400
barrel and 1 million feet of gas would generate well over $5,000,000.00 per
year. The operator feels that after a successful frac of the Mississippian
zone, similar rates may be attainable on this first well of a proposed 15
well program.
The operator has further informed the company that the pipeline construction
is complete. Also, the operator feels the gravity of the oil to be tested
is excellent and could be in the 45 plus gravity range, which would should a
premium to current to oil price. The tank batteries for the oil are in
place and we could be selling the oil and gas before the end of next week if
all goes well.
The frac process should take approximately 4-6 hours to do the actual frac
and preliminary flow results should be known within 24-48 hour period
following the frac.
The Green Ranch Prospect is a proposed 15 well program consisting of 4,131
acres of leasehold on the Green Ranch in Stephens County, Texas. This
leasehold is located approximately 50 miles northeast of Abilene, Texas and
approximately 10 miles northwest of Breckenridge, Texas, along the North
Stephens-Shackelford County line. HAO holds a 10% working interest in the
Green Ranch Prospect. 80% of the project is privately held.
The Green Ranch Prospect lies within an oil and gas producing province
identified as Texas Railroad Commission District 7B, which encompasses 24
counties in North Central Texas. TRRC reports indicate District 7B has
produced a total of 2.225 Billion barrels of Oil during the period from 1935
through June of 2001. These reports also indicate the district has made
2.277 TCF of unassociated gas (gas wells) from 1970 through June of 2001.
It is estimated that this district accumulated approximately 2.78 TCF of
casinghead gas. During the year 2000, District 7B made 14.1 Million barrels
of oil, 18.6 BCF of casinghead gas and 45.3 BCF of unassociated gas.
There has been over $1.5 million spent on the Green Ranch Prospect to date.
Jason Gigliotti, a director of the Company states, "We are very excited
about the frac about to happen. This first well looks extremely encouraging
for both an oil and gas discovery. When you consider the apparent quality
of the oil as well, this could value the well above market prices. This
well could be first in a major field for HAO, and since the company has the
largest working interest with the least amount of shares outstanding of the
public companies involved, HAO has great leverage to this field."