WYN DEVELOPMENTS INC. ANNOUNCES SPUDDING OF PROPHET RIVER NATURAL GAS EXPLORATORY WELL (d-60-E/94-G-15)
Vancouver, British Columbia, Canada - June 23, 2006 - Wyn Developments Inc. ("Wyn Developments" or the "Company") announces that the Prophet River Slave Point exploratory well (d-60-E/94-G-15) will be spudded no later than June 26, 2006. The well is expected to take approximately sixty-five (65) to seventy (70) days to reach total depth and an additional two (2) to three (3) weeks for testing and completion, if warranted. The drilling of this test well has been contracted to a major Canadian oil and gas company.
The 2D and 3D seismic data has been reviewed by qualified and experienced representatives of all Partner Companies and the major Canadian oil and gas company. They have unanimously approved the well plan. Their interpretation and consensus confirms the following:
- The main target of this project, the Slave Point formation, is a closed, five cycle (full Slave Point) buildup and contains two prospective zones within the formation.
- The first prospective horizon is stratigraphically equivalent to the producing zone of the nearby Adsett field. Porosity distribution, as interpreted from the 3D seismic, is comparable to that of Adsett producing wells. Adsett has produced 91.6 Billion Cubic Feet (Bcf) of gas from four (4) Slave Point pools to March, 2006. (Source: BC Oil and Gas Commission "Reserves Data for all oil & gas pools in BC").
- The second prospective horizon (upper Slave Point) is productive in the prolific Clarke Lake Field where 1.65 Trillion Cubic Feet (Tcf) of gas has been produced from the Clarke Lake Slave Point A pool to March, 2003. (Source: BC Oil and Gas Commission "Reserves Data for all oil & gas pools in BC").
- Three additional secondary natural gas targets have been identified, including the Halfway, Debolt, and Banff formations.
- The Slave Point "prospective resource estimate" for the Prophet River gas project, as determined through 2D and 3D seismic interpretation and analogue producing wells, ranges between 96 Bcf (Pmean) to 227 Bcf (P10 probabilistic confidence level). For investor reference, the Canadian Oil and Gas Evaluation Handbook defines prospective resources as;
- "Those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations. If discovered, they would be technically and economically viable to recover. If discovered, there is no certainty that any discovery will be technically or economically viable to produce."
- There is no certainty that this prospective resource will be discovered. This Prophet River Slave Point "prospective resource estimate" was conducted internally by a qualified evaluator of the Operator; however, Wyn Developments has not verified the estimate.
The Company also announces that this well is not classified as a tight hole. Shareholders will be promptly informed of results after all project data has been interpreted. The Company has a 21 2/3% working interest in eleven (11) sections of 'A' lands, and will earn this interest to the total depth drilled. The Company will also earn the right to drill an option well on the ten (10) sections of 'B' lands adjacent to the 'A' lands, for a 21 2/3% working interest to total depth drilled.
Management looks forward to the promise and potential of this Prophet River Slave Point natural gas exploration project for the Company and its shareholders.
About Canada Rare Earths
Canada Rare Earths is a growth company focused on the exploration and development of rare earth elements at its 100% owned Goeland Rare Earths Project within the Montviel carbonatite complex, Montviel Township Quebec, immediately adjacent to Geomega's (TSX-V: GMA) recent rare earth discovery. The Goeland property located 215 km north of Val-d'Or, is road accessible and consists of 47 claims totaling approximately 2,600 hectares. Since the acquisition of the Goeland Project, the Company, in a short period of time, has successfully established itself in one of the largest Carbonatite complexes in North America. Worldwide, carbonatite-related deposits are a major host for rare earths elements ("REE"). The world's most advanced and prolific REE deposits in production or development, Bayan Obo (China), Molycorp's Mountain Pass (USA), Lynas's Mount Weld (Aus), and Rare Earth Element Resource's Bear Lodge project, are all hosted by carbonatites.
For more information on Canada Rare Earths, please contact our Head Office.
On Behalf of the Board of Canada Rare Earths Inc.
Chad McMillan
President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. All of the above is subject to TSX.V and regulatory acceptance.
FORWARD LOOKING STATEMENTS
Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Company's Pre-Development Agreement and the exploration of the Goeland Project, constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required government or other regulatory approvals and any required financing to complete the Company's obligations pursuant to the Pre-Development Agreement and planned exploration activities, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to Canada Rare Earth's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others, actual results of the Company's exploration activities being different than those expected by management, uncertainties involved in the interpretation of drilling results and geological tests, delays in obtaining required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdowns and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. Canada Rare Earths does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
« Previous Release - June 21st, 2006 | Next Release - August 21st, 2006 »
