Ausam announces status of multi-well drilling program in Australia



    /NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE
    DISTRIBUTION SERVICES/

    Common Shares Outstanding: 149,041,754

    TSX Venture Exchange - symbol "AUZ"

    CALGARY, March 27 /CNW/ - Ausam Energy Corporation ("Ausam" or the
"Company") announces an update of the operations of its wholly-owned
subsidiary Ausam Resources Pty Ltd in Australia ("ARL").

    QUEENSLAND

    The Downlands South-1 well has recently been drilled and was the second
of three wells in Stage 1 of ARL's farmin agreement with Mosaic Oil N.L.
("Mosaic"). The Downlands South-1 followed the successful Downlands-4, which
is due to be tied into production facilities during April 2007. Ausam's
portion of gas production from the Downlands gas field is being marketed
through Mosaic.
    Downlands South-1 was drilled in PL 119 in the Surat Basin of Queensland
to a total depth of 1887 metres. The Tinowon Sandstone was present over the
interval 1842 to 1852 metres with associated elevated gas shows whilst
drilling. As wireline log results were inconclusive, an open-hole drill stem
test (DST) was undertaken. No oil or formation water was recovered and
preliminary test data indicates that, at this location, the Tinowon Sandstone
is tight. The Downlands South-1 well was plugged and abandoned. Data from the
Downlands South-1 well will be used to delineate the Downlands gas field.
    Brynog-1, Ausam's third and final well of Stage 1 of the farmin with
Mosaic, was spudded in ATP 471P Bainbilla Block in the Surat Basin of
Queensland on March 26, 2007. Brynog-1 is expected to take 18 days to drill to
a total depth of 2240 metres. The target is the Permian Tinowon Sandstone,
which is productive in the Churchie-Noorindoo gas fields to the northeast. ARL
will fund the first AU$1.5 million of the Brynog-1 well costs and then
contribute pro-rata for costs above AU$1.5 million. Upon completion of the
Brynog-1 well and AU$5 million in expenditure, ARL's interest in PL 119,
PPL 58 and ATP 471P Bainbilla Block will increase to 26.9%.

    VICTORIA

    In PEP 166 in the onshore Gippsland Basin of Victoria, drilling
re-started at the Hazelwood-1 well on March 24, 2007. The first 393 metres of
top hole had been previously drilled and the Hazelwood-1 will now be drilled
to an estimated total depth of 2750 metres. The Hazelwood-1 well is designed
to test the Strzelecki Formation, which has demonstrated the presence of gas
in previous wells drilled in the area, and to test the Rintoul's Sandstone,
which is expected to be encountered above basement. The operator, Lakes Oil
N.L. ("Lakes"), reports that the Rintoul's Sandstone formation overlays an
organic rich shale and that earlier tests of the shale resulted in producible
hydrocarbons. Lakes is funding 100% of the drilling of the Hazelwood-1 well
and the upcoming Boola Boola-1 well in PEP 166, under a previously announced
farmout agreement with ARL. Upon completion of the two wells, ARL's interest
in PEP 166 will be reduced to 25%, from the current 50%.

    Cautions Regarding Forward-Looking Statements

    Forward-looking statements (often, but not always, identified by the use
of words such as "expect", "may", "could", "anticipate" or "will" and similar
expressions) may describe expectations, opinions or guidance that are not
statements of fact. Forward-looking statements are based upon the opinions,
expectations and estimates of management of Ausam as at the date the
statements are made and are subject to a variety of known and unknown risks
and uncertainties and other factors that could cause actual events or outcomes
to differ materially from those anticipated or implied by such forward-looking
statements. Those factors include, but are not limited to, risks,
uncertainties and other factors that are beyond the control of Ausam, risks
associated with the oil and gas industry, commodity prices and exchange rate
changes, operational risks associated with exploration, development and
production operations, delays or changes in plans, risks associated with the
uncertainty of reserve estimates, health and safety risks and the uncertainty
of estimates and projections of production, costs and expenses. In light of
the risks and uncertainties associated with forward-looking statements,
readers are cautioned not to place undue reliance upon forward-looking
information. Assumptions relating to certain forward-looking information
contained in this press release are set out herein. Although Ausam believes
that the expectations reflected in the forward-looking statements set out in
this press release or incorporated herein by reference are reasonable, it can
give no assurance that such expectations will prove to have been correct. The
forward-looking statements of Ausam contained in this press release, or
incorporated herein by reference, are expressly qualified, in their entirety,
by this cautionary statement.

    About Ausam

    Ausam is a public company trading on the TSX Venture Exchange under the
symbol AUZ and is engaged in the business of oil and gas exploration. Ausam
has acquired a diverse portfolio of oil and gas leases in Texas, Louisiana,
Mississippi, Alabama and Arkansas and is pursuing exploration and development
activities on these leases. Ausam, through its Australian subsidiary Ausam
Resources Pty Ltd., is also applying proven North American drilling and
completion techniques that have not traditionally been used in the Australian
energy industry to targets in Queensland, Victoria and Western Australia.
Ausam's growth strategy includes the organic development of its current
holdings and selective corporate transactions.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities of Ausam in any jurisdiction. The
securities to be issued pursuant to the Private Placement by Ausam have not
and will not be registered under the United States Securities Act of 1933, as
amended (the "1933 Act"), or the securities laws of any state of the United
States, and may not be offered or sold in the United States absent
registration or an applicable exemption therefrom under the 1933 Act and the
securities laws of all applicable states.

    %SEDAR: 00008979E




For further information:

For further information: Mark G. Avery, Chairman, President and CEO,
mavery@ausamenergy.com; Alastair J. Robertson, Chief Financial Officer,
arobertson@ausamenergy.com; Ausam Energy Corporation, 1430, 1122 - 4th Street
S.W., Calgary, Alberta, T2R 1M1, Tel: (403) 215-2380, Fax: (403) 206-1457, Web
site: www.ausamenergy.com

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AUSAM ENERGY CORPORATION

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