VANCOUVER, British Columbia, Jan. 27, 2005 (PRIMEZONE) -- Habanero Resources Inc. ("HAO") (Pink Sheets:HBNRF) (TSX Venture Exchange:HAO) wishes to provide the following company update:
HAO has just been informed by the operator that the Enchant Well in Alberta is now online and producing oil for sales. The initial rates are 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 more stable flow rate. If the well sustains a rate of 49 barrels per day, this would effectively increase HAO's daily revenue by approximately 400%. 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 $350,000 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.
Casing has been set and cemented as per the requirements of the Texas Railroad Commission on the Stuart 60 No. 8 Well on the Martex Prospect in Texas. It is anticipated that preliminary results from this well will be known within 7-10 days. This is the first to be drilled of the remaining three wells on the Martex Prospect. All of these wells have already been paid for. It is anticipated that as soon as this well is completed, work on the remaining two wells will commence. The first five wells on this prospect were successfully drilled.
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 first quarter of 2005.
Jason Gigliotti, president of HAO stated, "HAO is in the strongest position that it has been in over the five years I have been involved with the company. Our cash position is at its highest level. We have over $350,000 in the bank to utilize in growing the company. All our current drill costs have been paid. We are expecting results on the next three wells in Texas shortly. Oil and gas prices are near all time highs. If the Enchant well can stay at the initial levels, this will be the best revenue stream HAO has had in years. Couple all these factors together and it is clear why we are very optimistic about HAO's future growth."
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 now one in Alberta.
If you would like to be added to HAO's email updates list, please send an email to ir@habaneroresources.com requesting to be added.
BY ORDER OF THE BOARD OF DIRECTORS
"Jason Gigliotti"
Jason Gigliotti, President
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