Echo Energy Canada Inc. initiates testing program on new wells



    
    Listing: TSX Venture Exchange ("EEI.V")
    Issued Common Shares: 60,208,086
    

    TORONTO, Feb. 26 /CNW/ - Echo Energy Canada Inc. ("Echo Energy" or the
"Company") is pleased to announce it has initiated a testing program on its
five new wells not yet on line. In keeping with its business plan, they are
slated to come on line early this spring. This program will consist of placing
a gas well metering package, stationed on the well sites. Round the clock
monitoring will take place over a 24-hour period while flowing and flaring gas
in order to ensure the integrity of the results and safety of the area while
flaring gas.
    This test is in keeping with normal Industry practice and allows the
Company to apply sound information to ensure good businesses decisions are
made prior to committing the funds required to tie in the wells to the
existing distribution system. This test will also allow it to more accurately
understand the amount of gas able to be harvested, enabling reasonable
decision-making prior to spending the monies.
    Until recently, there had not been any documented processes or rationale
for the continued investment in new wells. Any investment appeared to have
been based on very limited geology, using assumed values consistent with the
blanket nature of the sandstone reservoir and utilizing reservoir parameters
obtained by the drilling results without definitive testing. Within the next
several weeks, the Company will announce the results of these tests and
whether or not they demonstrate that these five wells are viable and support
continued investment. If warranted, the Company will begin the installation of
an interconnection pipeline from the wells to the existing compressor
facilities system within the upcoming months.
    Echo Energy has many producing gas wells and an extensive pipeline
infrastructure in the area of these new wells. Subsequent to this testing
program, Echo Energy plans to conduct a study of the geology within its land
holdings with hopes to commence a small drilling program of two to four new
wells.
    It is expected that results of the test will not be part of the
evaluation of Echo Energy's oil and gas properties for year-end 2008 that is
currently in progress. However, results will be available prior to its
published year-end financial statements.

    About Echo Energy

    Echo Energy is a publicly traded energy company with revenue producing
natural gas production operations near Port Burwell Ontario, Canada on the
shores of Lake Erie.

    Statements in this news release that are not historical facts, including
statements about plans and expectations regarding properties, reserves,
transactions and opportunities, capital resources and future financial results
are forward-looking. Forward-looking statements involve risks and
uncertainties, which may cause the Company's actual results in future periods
to differ materially from those expressed. These uncertainties and risks
include changing gas and commodity prices and currency exchange rates, demand
for gas, lack of success of future exploration and development, competition
and other factors discussed from time to time in the Company's filings with
the Ontario Securities Commission.

    
    Neither the TSX Venture Exchange nor any securities regulatory authority
    has approved or disapproved of this news release.
    

    %SEDAR: 00010723E




For further information:

For further information: Charles Edey, President, at 1-877-396-3540,
chuck@echoenergycanada.com, http://www.echoenergycanada.com

Organization Profile

Echo Energy Canada Inc

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890