TG World Energy Corp. (fka TGE.v)

[Tackler]

TG World JV wins $836,800 bid in North Slope lease sale

2006-10-26 14:10 ET - News Release

Mr. Clifford James reports

TG WORLD AND JV PARTNERS ANNOUNCE SUCCESSFUL BIDS IN ALASKA NORTH SLOPE AND BEAUFORT SEA LEASE SALES

TG World Energy Corp. is party to apparent high bids, by Alaska Venture Capital Group, LLC, in the Alaska North Slope area-wide lease sale and the Beaufort Sea near-shore, state lease sale. Sealed bids from industry were opened on Oct. 25, 2006, by the Alaska Department of Natural Resources in Anchorage, Alaska.

On behalf of the joint venture companies TG World, Ramshorn Investments, Inc. (a wholly owned subsidiary of Nabors Drilling U.S.A. LP) and Bow Valley Energy, AVCG had successful bids totalling $836,800, or 26 per cent of the total $3.2-million bid at both sales by eight industry bidders or bidding groups.

AVCG was apparent high bidder ($630,400) on 12 of 13 tracts bid, for 30,700 acres, in state jurisdiction lands in the Beaufort Sea near-shore. Seven of the bids (totalling $311,680 for 17,920 acres) consolidates AVCG's acreage block in its Gwydyr Bay prospects area. The JV partners currently plan to drill two wells this winter on their Gwydyr Bay lands from onshore surface locations to distinctly different offshore subsurface targets. A third well may be drilled dependent upon the initial wells' results. The other five high bids in the Beaufort Sea sale (totalling $318,720 for 12,800 acres) are in a new area for AVCG, north of the Alpine field.

In the North Slope sale, AVCG consolidated acreage surrounding its Titania prospect on the western side of the North Slope in the Colville River area with the purchase of four tracts, for 8,960 acres. Total bids in this area were $111,360. The Titania prospect is south of the large 500-million-barrel Alpine field complex operated by ConocoPhillips. A 3-D seismic shoot is currently planned in this area, potentially this winter, with possible exploration drilling in the 2008 winter season.

Operations in the Gwydyr Bay area and the other prospect areas held by AVCG will be managed by Anchorage-based Brooks Range Petroleum Corp., a wholly owned subsidiary of AVCG LLC.

The AVCG/TG World Energy/Ramshorn/Bow Valley Energy joint venture was formed earlier this year as an exploration agreement covering a large area of mutual interest on the central part of the Alaska North Slope and adjacent near-shore leases in the Beaufort Sea. All of the JVs are currently expected to exercise their option to acquire their proportionate share of the leasehold acquired by AVCG once the leases are issued by the State of Alaska.

"This is a very successful sale result for us," said Cliff James, TG World's chief executive officer. "We added acreage in our Gwydyr Bay and Titania prospect areas, and we acquired acreage in a new play area which we believe will add additional value to TG World going forward."