Canadian Oil

[Ed Monton]

Canoro Begins Drilling at Dolakharia, Updates Amguri

CALGARY, ALBERTA--(CCNMatthews - May 7, 2007) - Canoro (TSX VENTURE:CNS) announces that it began drilling operations at the Dolakharia exploration location on the AA-ON/7 exploration block in northeast India on the weekend. This well is planned to test a large seismic amplitude anomaly in the Tipam formation, plus a number of secondary deeper targets. The well is to be drilled to an approximate total depth of 1,700 meters, down to basement. After completion of the Dolakharia well, the drilling rig is planned to move to Amguri to directionally drill Amguri 10B.

Amguri Update

All information from the suspended well Amguri 10A has been gathered, processed and analyzed. The rock velocity information around the main fault has been updated, significantly explaining the unexpected results seen in Amguri 10A. The additional information further reconfirms the majority of the original mapping and geological model of the Amguri field.

Based on this additional information, a new target location in the producing Barail formation for the well Amguri 10B has been selected, approximately 500 meters from the producing well Amguri 6. To reduce costs, the first 1,600 meters of the existing Amguri 10A well bore will be used and then directionally drilled to the new Barail target.

Canoro is a Canadian-based international oil and gas company operating in the Assam/Arakan basin of northeast India. Canoro is the operator of Amguri field with a 60% working interest. Canoro is the operator with a 65% working interest in the AA-ON/7 exploration block. Canoro also has a 15% non-operated working interest in the AA-ONN 2003/2 exploration block.

Common shares of Canoro trade on the TSX Venture Exchange under the symbol 'CNS'.

This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond Canoro's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Canoro's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Canoro will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Canoro or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Canoro does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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