VANCOUVER, British Columbia, Oct. 18, 2005 (PRIMEZONE) -- Habanero Resources Inc. ("Habanero") (TSX-V:HAO) (Pink Sheets:HBNRF) wishes to announce that it has entered into negotiations on multiple new prospects, including an oil sands project. A decision on one or more of these prospects is expected shortly. Habanero has sufficient funds in the bank to cover the costs of these new prospects that are being evaluated. There is no guarantee that any of these deals will be completed.
Jason Gigliotti, President of Habanero stated, "Habanero is now in the best financial condition it has been in since I have been president of the company. Over the past five years the focus has been on low-risk projects in order to build oil and gas revenue. We currently generate production from interests in 15 wells. Going forward we feel that taking on some `blue sky or home run' type projects could add significant value and aid in reaching our goal of becoming a mid-range oil and gas producer. Of course these types of projects carry a greater risk, but at this time based on our current financial position, we feel this is the direction Habanero will move towards in order to maximize shareholder value. We have enough money in the bank to take on some `blue sky' projects without having to dilute through financings. We are days away from our USA listing and currently undertaking due diligence on a European listing. These are very exciting days at Habanero, and we think this quarter will be one of the most important in the future growth of Habanero."
The Form 15C2-11 document has now been submitted, which is an information and disclosure statement, to attain a full U.S. quoted listing (press release dated September 15, 2005). It is anticipated that Habanero's U.S. trading symbol will be fully quoted within the next 2 weeks. The U.S. listing will enable potential shareholders who are outside of Canada to trade the common shares of Habanero more easily. Habanero's shares currently trade under the U.S. symbol HBNRF, but it is just a clearing symbol at this time showing no bid or ask price. This new listing will cause no change in the number of shares outstanding, nor will it have any impact on shareholders who already own shares at this time. At this time approximately 99% of HAO's volume is traded on the TSX Venture Exchange in Canada.
Habanero is expecting a full report on the Enchant Oil and Gas Prospect to be received from the new operator shortly (press release dated September 21, 2005). This report will lay out the drilling plan for this prospect. This prospect carries the largest net interest that Habanero currently has on its oil and gas prospects.
The Martex Prospect in Texas is expected to recommence operations over the coming weeks. Unfortunately, the hurricanes caused delays though out the gulf region and the operator is now anticipating operations to start this quarter. Habanero has two more fully paid wells to complete on this prospect. Habanero has already had 5 out of 5 wells drilled successfully on this prospect.
Habanero was recently notified by Liberty Fund Management that it will be part of the Liberty Micro-Cap Oil & Gas Index (press release dated September 19, 2005). According to a Liberty Fund Management news release dated September 19, 2005, "Liberty Fund Management will be launching the world's first, micro-cap Oil & Gas index on September 30, 2005 . . . The portfolio manager of the Liberty Micro-Cap Oil & Gas Index Fund will be Richard Johnston, MBA, and CFA whom previously was the Chief Investment Officer for a CDN $6.5 billion pension fund. There will be approximately two hundred companies, including HABANERO RESOURCES, in the index. The collective market cap of all of the companies in the index is approximately CDN $4 billion. The objective of the fund is to provide large cap investors with a way to get exposure to the higher rates of return that micro-cap equities offer, while minimizing some of the volatility and liquidity problems that accompany micro-cap companies."
Habanero is currently in negotiations on a new multi-well oil and gas prospect in Alberta, Canada (press release dated August 26, 2005). The board is still reviewing this project and a final decision is expected shortly.
Habanero is an emerging junior oil and gas company focused on high reward, low-risk oil and gas exploration and production in North America. Habanero's goal is to become a mid range oil and gas producer. Habanero currently earns oil and gas revenue from 15 wells located on multiple oil and gas fields located in Texas, Saskatchewan and Alberta.
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BY ORDER OF THE BOARD OF DIRECTORS "Jason Gigliotti" Jason Gigliotti, President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.