permit
May 11, 2010
PERMIT GRANTED FOR NEW WILKIE WELL
Deloro Resources Ltd. (TSX-V:DLL) is pleased to announce that a permit to drill a new well on the Wilkie heavy oil project has been granted by the Saskatchewan Ministry of Energy and Resources. The Company is finalizing plans to carry out the drilling and testing of this well. This is the first step in identifying up to 12 additional well locations which will target prospective areas of the McLaren zone utilizing EPI's EEOR technology.
Building on the positive oil sample test results reported in Stockwatch on Oct. 15, 2009, which confirmed an improvement in API gravity and reduction of crude viscosity by approximately 50 per cent, the company will now commence work on the next phase of its development program. The phase II program will consist of the drilling of a new well adjacent to the existing horizontal well that will be positioned as such to optimize extraction and utilize the existing infrastructure on location (such as tanks, pumps and anode bed). EPI will bear 50 per cent of the costs incurred in connection with the second well and will receive 50 per cent of the proceeds of the second well's output until payout, after which Deloro and EPI's interests will revert to 90 and 10 per cent respectively. Electro-Petroleum Inc. has earned a 10-per-cent working interest in the Wilkie heavy oil property as agreed and announced in Stockwatch on March 31, 2008.
EEOR -- Electrically Enhanced Oil Recovery, a patented technology from Electro-Petroleum Inc. (EPI), sets a new standard for heavy oil recovery, requiring no water and less power to apply than other thermal-assist systems. The process enables low-cost recovery of stranded oil reserves by applying electric currents to hydrocarbons in the ground which upgrades and mobilizes heavy oils that are too viscous to be extracted by conventional pumping techniques. EEOR is dramatically more environmentally friendly than alternative heavy oil extraction techniques (such as steam injection) -- Deloro and EPI are proud to point out that the EEOR process does not produce any greenhouse gases on site and does not utilize outside water for conversion to steam or injection.
Deloro's 90-per-cent-owned Wilkie project is located eight miles south of Wilkie, Sask., and consists of approximately 3,765 leased acres of petroleum and natural gas rights covering a channel in the McLaren zone that measures approximately one-half to three-quarters of a mile wide and approximately five miles long. The zone is at a depth of 2,035 feet, with five vertical wells and one horizontal well drilled into the structure, defining a heavy oil pay zone with gross sand thickness of 30 to 50 feet.
Reliance Engineering Group Ltd. recently completed an independent report in which estimates of discovered resources were performed in accordance with National Instrument 51-101 guidelines and generally accepted industry standards. The discovered resources were calculated based on McLaren sand net pay Isopach maps and the average reservoir parameters. The original discovered resources underneath company land were calculated to be approximately 63.1 million stock tank barrels.
The Company has granted stock options to directors, officers and consultants to purchase up to 560,000 shares of the company at 20 cents per share for a period of 10 years pursuant to the company's stock option plan.
Mike Magrum, PEng, a qualified person under National Instrument 51-101, has approved the technical content of this news release.
Shareholders and other interested parties are invited to visit the Company Web Site at www.deloro.ca for additional information.
Mike Magrum
President and Director604-484-5761: Vancouver Office
877-454-0383: For more information, Mark Tommasi