VANCOUVER, March 8, 2005 (PRIMEZONE) -- British Columbia, Habanero Resources Inc. ("HAO") (TSX-V:HAO) is pleased to announce that it has been notified by the operator that the Stuart 60 No. 8 Well on the Martex Prospect is scheduled to be fraced on March 18, 2005. The operator stated, "This frac will be the largest we have performed on the Big Saline wells and we hope to increase the flow rate accordingly. We will begin digging a pit to load with the water starting the first half of March. With pit construction time, lining the pit, filling with water, we plan to schedule the frac for March 18th. At this time, we should have everything ready to go to put the well on line without any shut-in time." As soon as this well is completed, the next well on this prospect is expected to commence.
The Enchant Well in Alberta is now online and producing oil for sales. The initial rates were 49 barrels of oil per day. The well will be constantly monitored and adjustments will be made over the next few weeks as the well establishes a stable flow rate. Due to the success achieved on this well, a more intense drilling operation is being planned for this prospect in the near future.
HAO currently has over $300,000 in the bank and all current drilling costs are fully funded. We plan to utilize this cash to build HAO's assets either through acquisitions and/or additional drilling.
HAO has an agreement to participate on an additional gas prospect in Alberta, Canada, the Redwater Prospect. The prospect calls for one initial well, with the potential to drill multiple wells if the first well is successful. The formation of primary interest on this property is the Viking Sands, which is gas productive throughout the immediate area. Recently, the Viking zones have been tested and produced gas in a number of wells in the immediate area of the prospect. According to geological reports, drill stem tests have resulted in flows over 12,000,000 feet of gas per day. This prospect is expected to commence operations during the second quarter of 2005.
Jason Gigliotti, president of HAO stated, "This is a great time to be a producing oil and gas company. With oil and gas prices near all time historical highs, any new discovery would be a met with market conditions unlike most we have had. We have over $300,000 in the bank to utilize in developing the company. All our current drill costs have been paid. We are expecting results on the next three wells in Texas shortly. We are evaluating multiple other prospects right now as we have the cash on hand to take advantage of exciting projects that fit our growth criteria. With the three Texas wells about to be worked on, we are coming into a more active time and regular updates should be forthcoming. The next few months should be very exciting for HAO's management and shareholders."
HAO is an emerging junior oil and gas company focused on high reward, low risk oil and gas exploration and production in North America. HAO's goal is to become a mid range oil and gas producer. HAO currently earns oil and gas revenue from sources located on multiple oil and gas fields in Texas, one in Saskatchewan and one in Alberta.
Pursuant to HAO's 2004 Rolling Stock Option Plan, 210,000 incentive stock options have been granted to a director at an exercise price of $0.11 for 5 years.
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Contact Information: Tel 604-646-6900 Fax 604-689-1733 ir@habaneroresources.com www.habaneroresources.com
BY ORDER OF THE BOARD OF DIRECTORS
"Jason Gigliotti" Jason Gigliotti, President
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