CALGARY, Alberta, Nov. 1, 2004 (PRIMEZONE) -- Uranium Power Corporation's (OTCBB:URMP) Thornton Donaldson, President is please to report that the Company is making significant progress with its three core business units, being the Pasquia Hills Oil Shale Project, Firebag East Oil Sands Project, and Energy 51's development well drilling programs. Mr. Donaldson notes "The Company is entering an aggressive period of exploration and development over the next several months with significant results pending on all three programs. I thank all our shareholders for their patience and support while these programs have been financed and put together with senior personnel and consultants. I believe the Company is now well positioned to benefit as each program delivers their initial results over the coming months."
ANNUAL GENERAL MEETING
The Company will be holding its annual general meeting on Monday, November 1st at 10 am Pacific in the Board Room located at Suite 200, 475 Howe Street, Vancouver BC. It intends to change its name, subject to shareholder approval, from Uranium Power Corporation to CanWest Petroleum Corporation which is reflective of its commitment to oil and gas projects based in Western Canada. This will, on approval, necessitate changing the Companies CUSIP # at the same time.
PASQUIA HILLS OIL SHALE PROJECT- 1,000,000 ACRES
Simulation distillation tests have confirmed that 90% of the liquids distilled at 450 degrees Celsius were 76.7% hydrocarbon with a 14.1 API gravity that contained 59% aromatics. Further tests are on going including the Taciuk Process, Rock Eval, and PIONA, material balancing, Advanced Fisher Assay and others. While the results to date are very encouraging, it is too early for a summary recommendation as to the preferred method of primary separation of shale oil from the Pasquia Hills oil shale. The Company is also in discussion with industry partners at this time.
ENERGY 51 DRILLING PROJECTS
Energy 51, the operator, advises that the initial well for the Sylvan lake development drilling program will spud within 3 weeks. The Company will announce the drilling program details when it is underway. They have experienced a 30 day delay due to rig availability caused in part by poor weather elsewhere. The Company has a 25% working interest which, after royalties is equal to a 20% net revenue interest. It is expected to take approximately 10 days to drill and test the initial well. The initial well is a 7,200-foot Peskisko Sand test that is prospective for oil and gas. Each development well has probable production of 150 barrels of oil per day and 750 million cubic feet gas per day with reserves in excess of 1 billion cubic feet gas and 300,000 barrels oil. There are four other pay zones which are prospective for gas. The average well in the Sylvan Lake Field has produced 500 barrels oil per day with over one million cubic feet gas per day. Uranium Power Corporation's interest has the potential to produce $2 million USD per year from all 4 wells.
Under the terms of the Company's joint venture with Energy 51, it has agreed to participate as to 33% cost for a 25% working interest in a second project known as Barrhead, which is a natural gas development play with a potential for four wells. Details of the project will be released in the near future.
EARTH ENERGY LICENSE AGREEMENT
The Company is pleased to report that it has reached agreement in principle to amend the August, 2003 license agreement with Earth Energy Inc., whereby it will now receive a net profits and a royalty interest as well as the use of the catalyst and equipment at cost with related fees. Details of the amendment will be released on receipt of signed documents.
FIREBAG EAST OIL SANDS PROJECT -- 1,400,000 ACRES
As previously reported in the Company's news release of October 21, the Firebag East Project has been vended into an operating subsidiary company called Oilsands Quest Inc., which is a Calgary based private company with an experienced exploration and development team who have extensive experience in Athabasca Oil Sand Projects. After its initial funding of $5 million, which is forecasted to be completed by the end of November, Oilsands Quest will initiate a winter drilling program consisting of more than 20 wells. The Program will be underway in December of this year. Under the agreement with Oilsands Quest Inc., Uranium Power will recover its investment of $1,550,000 (CDN), remain the majority shareholder of Oilsands Quest, and retain the right for future finance.
SUMMARY
Uranium Power Corporation is a unique oil and gas company with exposure to significant upside value from two large world-class projects with potential for several billion barrels oil resource while developing a sustainable production cash flow from traditional oil and gas development drilling.
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.