CALGARY, June 9, 2004 (PRIMEZONE) -- Uranium Power Corporation (OTCBB:URMP) (Cusip No. 917022 10 5) -- The Firebag East Oil Sands Project totals 1,400,000 acres located in Townships 88 through 99 and Ranges 19 to 25 West of the 3rd Meridian, Saskatchewan which cover prospective lands that host Fort McMurray and Wabiskaw paleochannel zones containing Athabasca Oil Sands with potential for a major discovery. Uranium Power Corporation has agreed to purchase 100% of the issue shares of American Oil Sands Company that owns 51% of the Firebag East Project for 3,000,000 restricted common shares and a $0.12 per barrel royalty.
The Firebag East Permits are adjacent to and east of world class oil sand projects including Suncor Energy's Firebag SAGD operations that are slated to produce 140,000 barrels oil per day; Synenco Energy Northern Lights Open Pit Project with production planned at 100,000 barrels oil per day; Imperial Oils and Husky's Kearl Lake project which is a combination of open pit as well as SAGD production slated to produce 200,000 barrels oil per day; and Petro Canada's Lewis SAGD Project which plans to produce 60,000 barrels per day, for total of 500,000 barrels of oil per day. SAGD is an in situ steam production process from horizontal wells which is called "Steam Assisted Gravity Drainage." These four projects are reporting reserves of approximately 14 billion barrels oil at an estimated capital cost of $6.75 billion (CDN). The oil is primarily recovered from sand filled paleochannels within the Fort McMurray formation.
Geologic mapping as well as drill data from eighteen regionally spaced test wells drilled in the 1970s confirm that the same paleochannel zones in the upper Wabiskaw and Fort McMurray formations on the Firebag East Permit contain oil and have the potential for similar resource development.
There are three known prospective targets to drill test on the Firebag East Project covering some five townships at this time. The potential pay zones encountered from the previous drill cores and logs are as thick as 150 feet in the Wabiskaw formation and 58 feet in the Fort McMurray formation with several drill hole intersections grading better than 7% oil by weight. The best grades encountered have been from a 20-foot interval in the Fort McMurray formation from 628 to 648 feet in drill hole 7-11-95-25-W3M, which graded 9.1% oil by weight with 36% porosity and 47% oil saturation. Within this interval, the best core sample was 11.5% oil by weight and 63.9% oil saturation. For reference, normal cut off grades for Athabasca Oil Sands SAGD production is 7% oil by weight, 30% porosity and 60% oil saturation, indicating that the Firebag East Project has world-class exploration potential.
An initial exploration program may include geophysical surveys to delineate and prioritize the prospective targets before drilling to test the prospective pay zones.
Uranium Power Corporation President, Thornton Donaldson notes "The acquisition of a potential world-class Oil Sands project such as the Firebag East, is truly a milestone development for the Company. Initiating a comprehensive development program on the Firebag East will be a top priority as the Company continues its pre-feasibility study on its 4.3 billion barrel Pasquia Hills oil shale project."
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Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors effecting the Company's operations, markets, products and prices and other factors discussed in the Company's various filings with the Securities and Exchange Commission.