Canoro
Updates Status of AA-ON/7
(Calgary, Alberta � January 16, 2009) � Canoro
Resources Ltd. ("Canoro" or the
"Company") is updating the drilling and status on the AA-ON/7
exploration block in northeast India. Canoro has
completed its appraisal drilling operations at Dergaon
#2. The targeted zone was of equivalent structural height to Dergaon # 1, but appeared non-hydrocarbon bearing on
well-log data. Consequently, the Dergaon #2 appraisal
well has been plugged and abandoned.
The Company is currently evaluating the status of the AA-ON/7 block which
comprises 473 km2 in the State of Assam and 319 km2 in the State of Nagaland. Given
the results of Dergaon #2 and given that the Company
has no further drilling operations contemplated on the Assam side of the Block,
the Company plans to relinquish, subject to Government of India and partner
approvals, this acreage back to the Government of India. As a result of
the planned relinquishment, probable reserves of 21.2 BCF (3.5 MMBOE) net to Canoro�s 65% working interest and possible reserves of 15.8
BCF (2.6 MMBOE) net will be written down by the Company, also subject to
Government of India approval. Any relinquishment of AA-ON/7 will not affect any
proven reserves of the Company previously reported.
The Nagaland portion of the Block is under consideration by the Government of
India to be included in a new Production Sharing Contract which if approved, is
expected to be awarded to the Company in 2009.
S. Brian Gieni Les Kondratoff
Vice President, Finance & CFO President & CEO
tel: +1 (403) 543�5742 tel:
+ 1 (403) 543-5741
Suite 700, 717 � 7th Ave SW.
Calgary, Alberta T2P 0Z3
or visit our website at www.canoro.com
Common shares of Canoro trade on the TSX Venture
Exchange under the symbol �CNS�. The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this News Release.
This news release contains certain forward-looking statements, including
management�s assessment of future plans and operations, and capital
expenditures and the timing thereof, that involve substantial known and unknown
risks and uncertainties, certain of which are beyond Canoro�s
control. Such risks and uncertainties include, without limitation, risks
associated with oil and gas exploration, development, exploitation, production,
marketing and transportation, loss of markets, volatility of commodity prices,
currency fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers, inability to retain drilling rigs and other services,
delays resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources, the
impact of general economic conditions in Canada, the United States and
overseas, industry conditions, changes in laws and regulations (including the
adoption of new environmental laws and regulations) and changes in how they are
interpreted and enforced, increased competition, the lack of availability of
qualified personnel or management, fluctuations in foreign exchange or interest
rates, stock market volatility and market valuations of companies with respect
to announced transactions and the final valuations thereof, and obtaining
required approvals of regulatory authorities. Canoro�s
actual results, performance or achievements could differ materially from those
expressed in, or implied by, these forward-looking statements and, accordingly,
no assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do so,
what benefits, including the amount of proceeds, that Canoro
will derive there from. Readers are cautioned that the foregoing list of
factors is not exhaustive. All subsequent forward-looking statements,
whether written or oral, attributable to Canoro or
persons acting on its behalf are expressly qualified in their entirety by these
cautionary statements. Furthermore, the forward-looking statements contained in
this news release are made as at the date of this news release and Canoro does not undertake any obligation to update publicly
or to revise any of the included forward-looking statements, whether as a
result of new information, future events or otherwise, except as may be
required by applicable securities laws.
Non-GAAP terms
The Press Release contains the terms "funds from operations", and
"netbacks" which are not recognized measures under Canadian generally
accepted accounting principles. The Company uses these measures to help
evaluate its performance. Management considers netbacks an important
measure as it demonstrates its profitability relative to current commodity
prices. Management uses funds from operations to analyze performance and
considers it a key measure as it demonstrates the Company�s ability to generate
the cash necessary to fund future capital investments and to repay
debt. Funds from operations has been defined by the Company as net
earnings adjusted for non-cash items (depletion, depreciation and accretion,
stock-based compensation, unrealized (gain)/loss on foreign exchange, and
unrealized investment (gain)/loss) and excludes the change in non-cash working
capital related to operating activities and expenditures on asset retirement
obligations and reclamation. Canoro�s determination
of funds from operations may not be comparable to that reported by other
companies nor should it be viewed as an alternative to cash flow from operating
activities, net earnings or other measures of financial performance calculated
in accordance with Canadian GAAP. .
Barrel of oil equivalent
Where amounts are expressed on a barrel of oil equivalent (boe)
basis, natural gas volumes have been converted to barrels of oil equivalent at
six thousand cubic feet to one barrel of oil equivalent (6 mcf
= 1 boe). This conversion ratio is the
convention used in the oil and natural gas industry and is based on an energy
equivalent conversion method primarily applicable at the burner tip and does
not represent a value equivalent at the wellhead. The use of boe�s may be misleading, particularly if used in isolation.