VANCOUVER, British Columbia, Aug. 16, 2006 (PRIMEZONE) -- Habanero Resources Inc. (Pink Sheets:HBNRF) (TSX-V:HAO) (Frankfurt:HRJ) ("Habanero") is pleased to announce that the operator of the Sawn Lake Prospect in the Peace River Oil Sands region of Alberta has announced that the first well of a planned three-well program has now commenced. This first well, located at 11-32-91-12w5, is scheduled to be drilled vertically, plugged back, then kicked off horizontally and is targeting cold-flow primary production. As reported in Stockwatch on Aug. 1, 2006, Pan Orient has transferred its 10 percent working interest in these 69.5 northern sections of Sawn Lake oil sands leases (where this 11-32 well is currently being drilled) to Andora Energy Corp., a privately held company, in exchange for shares of Andora. Pan Orient currently owns approximately 36 per cent of the outstanding Andora shares and upon completion of a remaining transaction, currently scheduled for mid-September, Pan Orient will own a minimum 51-per-cent interest in Andora. Binding lock-up agreements exist between Pan Orient and certain shareholders of Andora, ensuring Pan Orient a minimum 51-per-cent ownership in Andora. Habanero owns 700,000 shares of Andora.
Jason Gigliotti, president of Habanero stated, "It is exciting that the drilling is now underway on the Sawn Lake Prospect. Our investment in Andora could end up being one of the most beneficial moves the company has made, especially now that Habanero (through Andora) will have exposure to one of the single largest contiguous land packages in the Peace River Oil Sands region of Alberta. When you couple this drilling with our Athabasca Oil Sands prospects, Habanero appears to be building a solid foundation for growth. At this time Habanero is further along on all of its prospects despite the shares being down more that 65% from the recent highs."
According to the Pan Orient (news dated Aug 15, 2006) all three wells in the program will be in close proximity to a southern 16 sections of the Sawn Lake oil sand leases, in which Andora owns a 100 percent working interest. Four of the 16 wholly owned Andora sections of oil sands leases have been assigned net probable and possible recoverable reserves of 98 million barrels (25.9 million probable and 72 million barrels possible) based on an independent third party National Instrument 51-101 reserves report completed by DeGolyer and McNaughten (D&M) in September, 2005. D&M assigned 256 million barrels of original oil in place on these four sections. In total, 63 of the northern 69.5 sections of the Sawn Lake oil sands leases (Andora owns a 10 percent interest) have been assigned 1.2 billion barrels of original oil in place (120 million barrels net to Andora) by AMJ Petroleum Consultants in a National Instrument 51-101 engineering evaluation in November 2004.
Habanero is an emerging junior oil and gas company focused on oil and gas exploration and production in North America. Habanero is one of, if not the smallest market capitalized company, that has interests in five separate Oil Sands prospects, including having exposure to approximately 55,000 acres of Oil Sands interests though its equity ownership in Andora. Habanero currently earns conventional oil and gas revenue from multiple wells located in North America. Habanero's goal is to become a mid-range oil and gas producer.
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BY ORDER OF THE BOARD OF DIRECTORS
"Jason Gigliotti"
Jason Gigliotti, President
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