VANCOUVER, March 10, 2005 (PRIMEZONE) -- Habanero Resources Inc. (TSX Venture Exchange:HAO) ("HAO") wishes to announce that it has entered into final negotiations on a new multi-well oil and gas prospect in the Pembina area of Alberta. A decision on this prospect is expected to be concluded within the next week. Operations on this prospect are expected to commence within two weeks. The Pembina field is the largest conventional oil field in Canada.
The Stuart 60 #8 Well on the Martex Prospect is scheduled to be fraced on March 18, 2005. The operator stated, "This frac will be the largest we have performed on the Big Saline wells and we hope to increase the flow rate accordingly. We will begin digging a pit to load with the water starting the first half of March. With pit construction time, lining the pit, filling with water, we plan to schedule the frac for March 18th. At this time, we should have everything ready to go to put the well on line without any shut-in time." As soon as this well is completed, the next well on this prospect is expected to commence.
The Enchant Well in Alberta is now online and producing oil for sales. The initial rates were 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 stable flow rate. 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 $300,000 in the bank and all current drilling costs are fully funded. The intent is to utilize this cash to build HAO's assets through acquisitions and/or additional drilling.
HAO has an agreement to participate on an additional gas prospect in Alberta, 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 second quarter of 2005.
Jason Gigliotti, president of HAO stated, "It is an excellent time to get involved in another exciting multi-well oil and gas prospect in Alberta. If we do participate in this new prospect it would give us two separate multi-well prospects that would be in operations this month. Considering that oil prices are at all time highs right now, any new discovery could add significant shareholder value."
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 one in Alberta.
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Contact Information: Tel 604-646-6900 Fax 604-689-1733, ir@habaneroresources.com, www.habaneroresources.com
BY ORDER OF THE BOARD OF DIRECTORS "Jason Gigliotti" Jason Gigliotti, President
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-0- Tel 604-646-6900 Fax 604-689-1733 ir@habaneroresources.com www.habaneroresources.com