VANCOUVER, British Columbia, Sept. 25, 2006 (PRIMEZONE) -- Habanero Resources Inc. (Pink Sheets:HBNRF) (TSX-V:HAO) (Frankfurt:HRJ) ("Habanero") wishes to announce that management has elected not to tender any of the shares in Andora (private oil sands company) to Pan Orient Energy (TSX-V:POE). Management feels that maintaining its interest in Andora and having exposure in the 85 contiguous oil sands leases offers far more significant future growth potential than tendering for an approximate 300% profit offered at this time.
According to the operator the drilling is now complete on two additional wells on the Sawn Lake Prospect in the Peace River Oil Sands of Alberta. At this time the completion operations on these two horizontal wells is continuing and an evaluation is expected in the next 30-60 days. According to Pan Orient (news dated Aug. 15, 2006) these wells are in close proximity to a southern 16 sections of the Sawn Lake oil sand leases, in which Andora owns a 100-per-cent 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-per-cent 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.
Jason Gigliotti, president of Habanero stated, "We think that having the interest in this massive land package is a far better way to grow the company than making a quick 300% profit. This is the kind of land size that the majors look for if the resource can be proven up. It may take a few years, but management feels that maintaining the shares in the private company offers far more long-term upside for Habanero shareholders as the extent of this land package is tested out. Habanero shares are now down more than 75% from the recent highs despite now having more assets and being further along on the prospects we have."
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. Habanero owns 700,000 shares of Andora.
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BY ORDER OF THE BOARD OF DIRECTORS
"Jason Gigliotti"
Jason Gigliotti, President
The TSX Venture Exchange has reviewed but does not accept responsibility for the adequacy or accuracy of this release.