Buffalo Resources Corp. ("Buffalo"
or the "Company") (TSX VENTURE:BFR) is
pleased to provide an update on its activities.
Drilling Joint Venture
Buffalo has entered into a Joint Venture
("JV") with Kadence Limited Partnership
("Kadence") of Vancouver, British Columbia.
This JV will allow Buffalo
to exploit its large inventory of drilling opportunities more efficiently and
to expand the level of activity previously forecast. Buffalo
and Kadence will commit up to $30 million for the
purposes of completing a drilling program on certain Buffalo properties over the next 12 months. Kadence will farmin and pay 50%,
to a maximum of $15 million, of all drilling, completion and equipping costs to
earn 50% of Buffalo's working interest in the wells, subject to the payment of
a 10% gross overriding royalty to Buffalo. After payout, Buffalo will retain 70% and Kadence 30% of the working interest in all wells. Under the
terms of the JV, Buffalo
will make an offer to Kadence not later than April 4,
2011, to purchase its interests in the JV properties.
Buffalo is
currently finalizing its drilling programs for the remainder of 2008 and plans
to drill between 60 and 70 wells. At Frog
Lake, the Company will
drill between 45 and 50 oil wells. The remaining 15 to 20 wells will be drilled
in the Peace River Arch of northwest Alberta,
at Whitecourt in west central Alberta,
at Viking and Jenner in southeast Alberta
and in southeast Saskatchewan.
Operations
Buffalo has completed, stimulated and tied-in its deep Mississippian
horizontal well at Pincher Creek 13-28-004-29W4. The well initially produced
natural gas at a rate of approximately 2 MMcf/d and
has stabilized at a rate of 1 MMcf/d. In August, the
Company plans to re-stimulate the well to improve productivity. In the Peace River
Arch, a well drilled on Company owned land has been completed and tied-in and
is currently producing natural gas from the Montney
formation at a rate of 3 MMcf/d with 25 bbls per MMcf of associated
liquids. The Company is currently evaluating follow up locations. Buffalo recently drilled ten wells at Frog Lake, Alberta
resulting in nine oil wells and one abandoned location. It is expected that the
oil wells will be on production by early August 2008.
Bill Trickett, the Company's CEO, commented,
"Following the equity financing in May 2008, the sale of non-core assets
in June 2008 and completion of the drilling JV, Buffalo is well positioned to
aggressively pursue its large inventory of drilling opportunities."
Buffalo is a Canadian oil and gas company engaged
in the exploration, development and production of oil and gas reserves in the
provinces of Alberta and Saskatchewan.
The securities being offered have not and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities
Act") or any state securities laws and may not be offered or sold within
the United States or to any U.S. person except in certain transactions exempt
from the registration requirements of the U.S. Securities Act and applicable
state securities laws.
Certain information set forth in this press release contains forward looking
statements. Readers are cautioned that the assumptions used in the preparation
of such information, although considered reasonable at the time of preparation,
may prove to be imprecise and, as such, reliance should not be placed on
forward-looking statements. Buffalo's actual
results, performance or achievements could differ materially from those
expressed in, or implied by, these forward-looking statements and accordingly,
no assurance 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 Buffalo
will derive therefrom. Buffalo disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
The TSX Venture Exchange
has not reviewed and does not accept responsibility for the adequacy or
accuracy of this press release.
Jason
Krueger, CFA
Redwood Capital Corporation
T: (403) 374-1234
E: jason@redwood-capital.com
.