Flair Petroleum Corporation Enters Into an Agreement to Acquire Heavy Oil Leases in Asphalt Ridge, Utah

Flair Petroleum Corporation Enters Into an Agreement to Acquire Heavy Oil Leases in Asphalt Ridge, Utah

Flair Petroleum Corporation (PINK SHEETS: FPMC) reports that it has entered into an agreement which gives the Company the exclusive right to acquire a 100% working interest in leases consisting of in excess of 1000 acres in the Asphalt Ridge Tar Sands deposit from the surface down to 1000 vertical feet, located in the prolific Uinta Basin, Utah (the “leases”). The Company is in the process of closing on a Purchase and Sale Agreement subject to conducting its technical and legal due diligence.

The Asphalt Ridge deposits are thought to be well suited to thermal recovery techniques. The thick, uniform sands of the Mesaverde Group are the best targets for such methods. It is estimated the bituminous sands in the Mesaverde contain reserves of oil totalling nearly 700 million barrels of oil in place. The recovery factor would likely be between 50 and 70%; thus total recoverable reserves in the Mesaverde should be at least 350 million bbl of oil. Utilizing the Heavy Oil Steam System (“HOSS”) from Radial Drilling Services (see www.radialdrilling.com) to which the Company has a preferential right of usage, it is estimated that the leases could produce over 10,000 barrels of oil per day (bopd) once full development has been completed and peak production is achieved.

Flair’s business strategy is to acquire proven heavy oil assets at the initial development stage, which have ready access to end-user markets and with minimum reserves of over 100 million barrels and the potential to produce more than 10,000 barrels per day.

This news release includes forward-looking statements that reflect Flair Petroleum Corporation’s current expectations about its future results, performance, prospects and opportunities. Flair Petroleum Corporation has tried to identify these forward-looking statements by using words and phrases such as “may”, “will”, “expects”, “anticipates”, “believes”, “intends”, “estimates”, “should”, “typical”, “we are confident” or similar expressions. These forward- looking statements are based on information currently available to Flair Petroleum Corporation and are subject to a number of risks, uncertainties and other factors that could cause the corporation’s actual results, performance, prospects of opportunities in the remainder of 2006 and beyond, to differ materially from those expressed in, or implied by, these forward-looking statements.

Contacts: Flair Petroleum Corporation Larry Podrasky Chief Financial Officer

(403) 399-9498

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