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ONA EXPLORATION ANNOUNCES COMPLETION OF A NEW EVALUATION REPORT ON DUTCH OIL WELLS PROJECT IN SOUTH SUMATRA, INDONESIA
Vancouver, British Columbia 30 October 2006, 10:00pm PST
Ona Exploration Inc. (the "Company") (CNQ: OEIX and FRANKFURT: O3X) is pleased to announce that Calco Geological and Engineering (CALCO), an independent qualified reserves evaluator based in Calgary, Alberta, has completed an evaluation of the Company\'s Dutch Oil Wells Project (the Project) in the Keluang oil field in South Sumatra, Indonesia. The evaluation encompasses the utilization of secondary and tertiary recovery methods for the remaining oil reserves. The report estimates the remaining recoverable reserve to be 20,000,000 barrels of oil.
In March, 2006 the Company released a report from Chapman Petroleum Engineering Ltd (Chapman) which only utilized primary recovery methods for the project. The Chapman report dealt only with primary remaining reserves and estimated that with 34,130,000 barrels of oil produced to date, only 1,806,000 STB of primary reserves remain to be recovered from the 98,457,392 barrels of original oil in place.
The Calco report addresses the potential of using secondary and tertiary production techniques to recover part of the remaining 64,732,000 STB of oil in the field. Current techniques used to recover the type of light gravity crude remaining in the Keluang reservoir include production through horizontal wells, water flood, miscible flood, and CO2 sweep or some combination of these.
As a result of this evaluation, it is recommended that bypassed oil reserves be accessed by the drilling of horizontal well bores to access non swept reservoir sectors within the field. Studies of North American field analogies shows that up to 50% of the remaining total oil reserves could be produced by the horizontal well bores.
Most of the recoverable oil has been classified as probable, which will change with the initial producing horizontal well bore. The cost to drill, complete and equipment the initial horizontal producing well is estimated to be US$1,200,000, which represents the initial risk investment. Calco has risked the entire project in the 36 per cent range. The anticipated initial price for the oil is US$57.91 per STB, which is a discount of $3.50 from the forecast benchmark WTI price representing the recent differential between Indonesian Minas crude and WTI.
The Calco report only addresses the Keluang field and does not address the Company\'s other two oil fields, Karangringin and Suban Baru. All projects are held in PT. Muba Ona Oil, the Company’s 80% held Foreign Investment Company in Indonesia, which is a joint venture with P.T. Petro Muba (PTPM), an agency of the Musi Banyuasin (MUBA) Local Government Regency. The corporation was formed to rework and develop a number of now marginal wells under the Production Sharing Contract (PSC) rights within the MUBA Regency, in South Sumatra, Indonesia. The agreement provides for the management and rehabilitation of the abandoned oil wells located within the boundary of the Corridor Block PSC area in the Keluang, Karangringin, and Suban Baru oil fields being an area that was previously managed by ConocoPhillips. Under this agreement, the Company is entitled to 80% of the net profit of the Contractor\'s take, after expenses and taxes under the PSC with the Indonesian government.
The Company will be filing its Statement of Reserves Data and Other Oil & Gas Information in accordance with National Instrument 51-101 in the month of November.
ON BEHALF OF THE BOARD OF DIRECTORS
" John F. Wong "
_______________________________
John F. Wong, P. Eng.
President
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