Drilling and Operations Update in Mississippi and Oklahoma
February 14, 2007
JACKSON, MS Lexaria Corp. (OTC BB: LXRA) (the "Company" or "Lexaria") provides the following update on its drilling and operations in Mississippi and Oklahoma:
The third well in the Phase II program in Mississippi was the Faust #1 well, which was earlier referred to as our TEC-1 Closure, reached total depth on 02/11/07. This well targeted and encountered the Frio formation and has been completed as an expected producing gas well. It will be connected and go into production as soon as possible. Several other previously drilled wells are waiting to be connected for production purposes, but these connections have been delayed due to poor ground conditions preventing proper access to the well heads. The next well in the current drilling program is expected to spud within about 3 weeks.
Lexaria has an Area of Mutual Interest (“AMI”) of up to 50 additional wells in Mississippi and Louisiana and has a 40% interest in this Phase II AMI. The Mississippi AMI is over 200,000 acres in size and has over 7,500 miles of 2D seismic and 250 square miles of 3D seismic already shot, identifying over 100 drill targets to date.
At the Owl Creek Prospect in Oklahoma, Lexaria expects that the Isbill #2-36 development well will be spudded within about one week. The Owl Creek Prospect has been totally reinterpreted during the last several months after integrating all the seismic data and the data obtained from the drilling of the Powell #1 and #2 and the Isbill #1. The Drilling of the Isbill #2-36 will be to a total depth of approximately 2,200 feet and is targeting the Bromide sands, which occur at several levels.
The Powell #2, in which we do not have an interest, is currently flowing between 100 and 150 BOD plus approximately 40 to 45 mcf/d of natural gas. This well has been flowing under its own pressure since June 2006. The Owl Creek Prospect has the potential for up to 10 additional wells. Other wells in the vicinity have had shows or production from the Viola, Hunton, Hart, Gibson and Bromide zones. Lexaria has a 7.5% interest in the Owl Creek Prospect beginning with the Isbill #1.
Recently, Lexaria filed its 10KSB with the Securities and Exchange Commission. The document was filed late to an administrative error, and we apologize for any confusion this may have caused. The Company is currently up to date on all its filings and regulatory requirements.
About Lexaria Corp.
Lexaria Corp. is an oil & gas company active in Mississippi, Oklahoma and in Alberta, Canada. The main focus currently is Mississippi, where it holds between 20% and 40% gross interests in various gas and oil projects. Lexaria routinely evaluates additional oil & gas projects and corporate opportunities.
Leonard MacMillan, 604-602-1675
Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors but they include and are not limited to the existence of underground deposits of commercial quantities of oil and gas; cessation or delays in exploration because of mechanical, operating, financial or other problems; capital expenditures that are higher than anticipated; or exploration opportunities being fewer than currently anticipated. The Company has no official gas or oil reserves at this time and may not have sufficient funding to thoroughly explore, drill or develop its properties. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements and filings.