VANCOUVER, British Columbia, Dec. 14, 2004 (PRIMEZONE) -- Bonanza Resources Corp. (TSX Venture Exchange:BRS) (Pink Sheets:BRSUF) today announced that company President Mr. Byron K. Coulthard has provided a review of the year 2004.
The following letter was directed by Coulthard to shareholders:
2004 has turned out to be a very successful and exciting year for Bonanza Resources with revenues increasing by 379% from the previous year. This is entirely due to our overwhelming drilling success in the Lasley Project in Caddo County, Oklahoma, where we have participated in nine drill holes resulting in nine producing gas wells.
Seven of the wells are currently producing cash for the Company with the other two coming online in early 2005. Bonanza has been very fortunate in having both Western Oil & Gas and Chesapeake Energy as partners in Lasley and we anticipate drilling at least six additional wells in 2005, the first being the Williams Nos. 2-9 in mid-January.
Bonanza has two properties in Texas, the first being the XX Ranch project outside Abilene. Our partner and operator, Enrich Oil & Gas, has recently shot 3D seismic on the property and has identified the channel system they were looking for. From this, Enrich drilled a well which has come online at 200mcf per day. Enrich plans on drilling multiple wells in 2005 on this 8,000 +/- acre property of which Bonanza has a 10% working interest.
The Worth project is located in Howard County, Texas. This is Bonanza's largest percent interest property with Bonanza having a 82.5% working interest on this 1,284 acre project. The Worth project is a re-entry well that has been compared to the "Would Have Field" discovery. The Would Have Field was discovered in 2001 by LCS Production Co. after re-entering a well originally drilled in 1996. LCS, after successfully re-entering this well, went on to drill an additional twenty-three wells to produce 3,050 boepd.
With the help of Schlumberger Oil Field Services Co. (NYSE:SLB), a leading oil field service company, Bonanza has identified a possible oil bearing zone around 4,370 feet. This zone is known as the Clearfork Formation and is known as a prolific oil bearing zone.
Bonanza is very excited to report that we have been informed by Le Clair Operating of Abilene, Texas that the Howard County re-entry well will be drilled before the end of December 2004, rig and weather permitting.
The company remains committed to identifying further high probability projects with the goal of increasing shareholder value.
The Board and I wish all our present and future shareholders a safe and happy season as we look forward to another successful year in 2005.
About Bonanza Resources Corporation
Bonanza Resources Corporation is a professionally managed junior Oil and Gas exploration company, with an increasing revenue stream. Bonanza is currently participating in drill programs in Oklahoma and soon Texas with the primary goal of increasing shareholder value.
On behalf of the Board of Directors, Mr. Byron Coulthard President
FORWARD-LOOKING STATEMENT - Although Bonanza Resources Corps believes many of its properties have promising potential, some of its properties are in the early stages of exploration. Some have yet been shown to contain proven oil and gas reserves. There can be no assurance that such reserves will be identified on any property, or that, if identified, oil and gas may be economically extracted. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
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