| ||November 23, 2010|
Thunderbird Expands Land Position
| ||Vancouver, British Columbia, November 23, 2010 - Thunderbird Energy Corp. (TSX-V: TBD) (the "Company") today provided a shareholder update on recent corporate developments.|
Gordon Creek, Utah - Land Acquisitions
The Company has expanded its Gordon Creek land base by 85% over the past few months, to roughly 7600 acres. Thunderbird intends to continue to acquire contiguous acreage, all of which is considered prospective for development and some of which is expected to add reserves. The impact of these land acquisitions on the Company's net reserve position will be assessed as of the Company's January 31, 2011 year end. Prior to the recent land acquisitions, MHA Petroleum consultants of Denver, Colorado completed an evaluation of the Company's Gordon Creek reserves, in accordance with National Instrument 51-101, which estimated Proved (1P) reserves at 9.3 billion cubic feet (Bcf) and Proved plus Probable (2P) reserves at 30 Bcf. The estimated discounted present value of these reserves (PV10) as at January 31, 2010 was US$49.7 million.
Building on the Gordon Creek Best Practices Study completed by the Company in 2009, Thunderbird has mapped out an extensive 3 stage development plan, the first 2 stages of which contemplate drilling of up to 36 wells and re-completing a further 5 standing wells. Activities to date include extensive geological and engineering analysis, the development of specific drilling and completion protocols, detailed cost estimation and economic analyses. Roads, pipeline routes and an initial 26 drilling locations have been formally surveyed and the permitting process has been initiated. The development plan has been designed in consultation with various stakeholders including local and State wildlife officials. The development plan has also been completed in consultation with Artola Energy, LLC of Houston Texas, in accordance with the previously announced joint venture agreement. To date, Artola has not been able to complete the required initial joint venture financing of $20 million, however the Company is continuing to work with Artola on a non-exclusive basis. The Company is also seeking alternative arrangements to finance the Gordon Creek development plan.
South West Partnership CO2 Project
Thunderbird is continuing to work closely with the Southwest Regional Partnership ("SWP") to complete the development plan for its Carbon Sequestration Phase III: Deep Saline Sequestration Deployment Project to be sited at Gordon Creek. This project will be funded approximately 80% by the US. Department of Energy ("DOE") and 20% by the other participants, including Thunderbird, The University of Utah through the Utah Science Technology And Research initiative ("USTAR") and the New Mexico Tech -- Petroleum Recovery Research Center. It is anticipated that the project will represent an investment in excess of Twenty Million (US$20,000,000) in wells, facilities and infrastructure to be situated at Gordon Creek. Work during the last few months has consisted of further design refinement and costing analysis, as well as navigating the project through the extensive DOE approval process. It is anticipated that the approval process will be completed in the first quarter of 2011 to allow the commencement of operations in the second quarter.
Weston County Oil Project
In late August Thunderbird announced that it has entered into an agreement with Ascent Exploration, Inc. ("Ascent") of Southlake, Texas to farm out roughly one-half of the Company's Weston County, Wyoming oil project acreage. Ascent has recently completed its legal due diligence and paid the first acreage bonus stipulated in the farm out agreement. Ascent has advised Thunderbird that it currently plans to drill the first well on the project in the second quarter of 2011.
The Weston County project is located in a prolific oil and gas producing area of the Eastern Powder River Basin. The project has a number of conventional oil and natural gas targets in the Dakota and Minnelusa formations. The Cretaceous Dakota and Permo-Penn Minnelusa are both highly productive sandstone reservoirs when found in trapping positions and have accounted for hundreds of millions of barrels of production in the Powder River Basin. Examples of Dakota and Minnelusa fields in the vicinity of the Weston County Project include the Donkey Creek, Raven Creek, Coyote Creek and Slattery fields, which have cumulative production to date of 100 million barrels of oil and 40 Bcf of natural gas.
On November 3, 2010 Thunderbird announced the first tranche closings of an equity offering and a 15% Natural Gas Linked Debenture issue. Concurrent with the latter closing, Thunderbird was able to fully retire and discharge its existing third party banking credit facility.
Commenting on these recent developments, Cameron White, President of Thunderbird Energy stated, "Although the past year has been a challenging one for natural gas producers in North America, we have taken the opportunity to expand our asset base and to take significant steps towards the development of our natural gas, oil and C02 resources. These steps, together with our recent debenture financing, are key components of our overall strategy to rapidly grow our reserves and asset base."
Thunderbird Energy is a Canadian based oil and gas exploration and production Company with interests in the US Rockies and mid-continent regions. Thunderbird's holdings include the Gordon Creek, Utah natural gas field, the Rush County, Kansas light oil project and a light oil exploration project in Weston County Wyoming.
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