Cork Exploration Inc. completes Carrot Creek infrastructure debottlenecking and Cochrane pipelining programs, announces closing of strategic acquisition and provides operational update including 2007 production guidance



    CALGARY, April 5 /CNW/ - Cork Exploration Inc. (the "Corporation" or
"Cork") (TSX: CRK) today announced that it completed its infrastructure
debottlenecking program at Carrot Creek on March 30, 2007 and its pipelining
project at Cochrane on March 21, 2007. Cork today also announced the closing
of a strategic acquisition of land and production in the Corporation's Carrot
Creek area and provided an operational update including 2007 production
guidance.
    With the Carrot Creek debottlenecking and Cochrane pipelining programs
complete, Cork estimates that its immediate productive capacity is
approximately 4,000 boe/d. The significant increase in production into the
debottlenecked third party Carrot Creek facility, however, has directly
resulted in temporary processing issues for the plant operator. The plant
operator has advised that it is actively working to resolve these temporary
processing issues. Cork is currently producing at approximately 3,500 boe/d
and expects to increase production in the near future to approximately
4,000 boe/d upon resolution of these temporary processing issues.

    CARROT CREEK DEBOTTLENECKED

    On March 30, 2007, Cork completed its debottlenecking program at Carrot
Creek, allowing for the unrestricted flow of the Corporation's production from
this area. The debottlenecking program included the laying of 5.3 km of 8 inch
pipe, 2.2 km of 6 inch pipe and the installation of 1,895 horsepower of
compression, tying into an existing underutilized plant. The total cost of the
program in 2007 was approximately $2.4 million.

    FIRST PRODUCTION FROM COCHRANE

    On March 21, 2007, the Corporation commenced production in Cochrane from
2 gross (1.2 net) wells, following completion of Cork's Cochrane pipelining
project. The Corporation laid 9.8 km of 6 inch pipe, 3.0 km of 4 inch pipe and
installed 810 horsepower of compression in the first quarter of 2007 at a
total cost of approximately $2.2 million.

    STRATEGIC ACQUISITION OF CARROT CREEK LAND AND PRODUCTION

    On April 2, 2007 and effective April 1, 2007, Cork completed the
acquisition from a private corporation of 14 gross (7.7 net) additional
sections of land in the Corporation's Carrot Creek area at an average working
interest of 55% and approximately 135 boe/d production of natural gas and
associated natural gas liquids from 6 gross (2.9 net) wells. Of the lands
acquired, 5 gross (3.3 net) sections are undeveloped. Cork has identified up
to 11 potential drilling locations on these lands, including 4 potential
horizontal wells. The total cost of the acquisition was $9.3 million, subject
to normal post closing adjustments, and was funded from the Corporation's
$45 million credit facility and operating cash flow.

    FIRST QUARTER OPERATIONAL UPDATE

    In 2007, Cork intends to shift its focus to the drilling of development
and exploration wells on a straight-up basis on earned lands. During the first
quarter of 2007, in addition to the infrastructure debottlenecking and
pipelining programs mentioned previously, Cork completed the drilling of
2 gross (0.7 net) wells that Cork was in the process of drilling at
December 31, 2006 and drilled an additional 6 gross (3.8 net) wells on a
straight-up basis at an overall casing success rate of 89%. Of these 8 gross
(4.5 net) wells, 3 gross (1.7 net) wells were in Carrot Creek, 2 gross (1.6
net) wells were in Pembina, 1 gross (0.6 net) well was in Cochrane and 2 gross
(0.6 net) wells were in Edson.

    2007 Production Guidance

    With the successful completion of the infrastructure debottlenecking
program at Carrot Creek and commencement of production from Cochrane near the
end of March 2007, Cork estimates that its first quarter 2007 average
production will be approximately 2,000 boe/d. This estimated first quarter
2007 production average is lower than the 2,700 boe/d previously anticipated
as a result of greater than expected impacts from third party infrastructure
constraints as well as higher than anticipated down-time and higher than
budgeted declines on certain wells.
    In the second quarter of 2007, Cork expects production to average between
3,600 boe/d and 4,000 boe/d, with anticipated normal production declines from
the Corporation's current immediate productive capacity of approximately
4,000 boe/d being offset by the commencement of 450 boe/d of new or shut-in
production from 4 gross (2.1 net) wells expected by June 30, 2007.
    As a result of the lower than anticipated first quarter 2007 average
production, Cork has reduced its 2007 average production guidance to between
3,500 and 4,000 boe/d from between 4,000 and 4,400 boe/d. The Corporation is
maintaining its 2007 exit production guidance of between 5,000 and
5,500 boe/d.

    Cork Exploration Inc. is a Canadian junior oil and gas company engaged in
the exploration, development and production of natural gas in the Western
Canadian Sedimentary Basin. The Corporation currently has 51.0 million shares
common shares outstanding and 9.8 million stock options and performance
warrants outstanding.

    CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

    Certain statements in this news release may constitute "forward-looking
information" or "forward-looking statements" which involve known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Corporation, or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking information. When used in this
news release, such information uses such words as "estimates", "expects",
"plans", "anticipates" and other similar terminology. This information
reflects the Corporation's current expectations regarding future events and
operating performance and speaks only as of the date of this news release.
Forward-looking information involves significant risks and uncertainties,
should not be read as a guarantee of future performance or results, and will
not necessarily be an accurate indication of whether or not such results will
be achieved. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking information,
including, but not limited to, the factors discussed below. Although the
forward-looking information contained in this news release is based upon what
management of the Corporation believes are reasonable assumptions, the
Corporation cannot assure investors that actual results will be consistent
with this forward-looking information. This forward-looking information is
provided as of the date of this news release, and, subject to applicable
securities laws, the Corporation assumes no obligation to update or revise
such information to reflect new events or circumstances.
    In particular, this news release contains forward-looking information
pertaining to the following: estimated current production and current
immediate productive capacity, timing of resolution of third party temporary
processing issues, estimated first and second quarter 2007 average production
rates, estimated 2007 average and exit production rates, 2007 drilling and
tie-in programs and estimated number of drilling locations on acquired lands.
    The Corporation's actual results could differ materially from those
anticipated in the forward-looking information as a result of several factors,
including the following: general economic conditions in Canada and
internationally; volatility in market prices for oil and natural gas;
competition; liabilities and risks, including environmental liabilities and
risks, inherent in oil and natural gas operations; sourcing, pricing and
availability of materials, equipment, suppliers, drilling services,
facilities, and skilled management, technical and field personnel; ability to
integrate technological advances and match advances of competition;
availability of capital; uncertainties in weather and temperature affecting
the duration of the oil and gas operations, drilling and the activities that
can be completed; changes in legislation and the regulatory environment,
including uncertainties with respect to implementing the Kyoto Protocol; and
the other factors considered under "Risk Factors" in the Corporation's Annual
Information Form dated March 28, 2007.

    %SEDAR: 00023712E




For further information:

For further information: Cork Exploration Inc., 380, 435 - 4th Avenue
S.W., Calgary, Alberta, T2P 3A8, Philip E. Collins, President and Chief
Executive Officer; or Geoffrey D. Krause, Vice-President, Finance and Chief
Financial Officer, Telephone: (403) 531-1695, Fax: (403) 531-1696, Website:
www.corkexploration.com

Organization Profile

CORK EXPLORATION INC.

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