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just a watch... CYRR - Canary Resources Is Negotiating Joint Venture to Drill Additional CBM Gas Wells
May 11, 2007 9:35:00 AM
STILWELL, KS -- (MARKET WIRE) -- 05/11/07 -- Canary Resources Inc. (PINKSHEETS: CYRR) ("Canary") announced that it has entered into negotiations with a private investment group to drill 10 to 15 coal-bed methane gas wells on its wholly owned leases in Kansas and Missouri on a joint venture basis. If negotiations are successful, Canary will be able to step up development in the Eastern Forest City Basin. It is contemplated that the private investment group would acquire up to a 50% working interest in the new wells drilled under the joint venture agreement. Canary would drill the wells near its recently completed Southern Star Central Gas Pipeline interconnect. Canary Operating Corporation would operate the wells and gas gathering services would be provided by Canary Pipeline, Inc. Canary is finalizing the engineering and regulatory testing for the interconnect facility.

Canary has nineteen completed gas wells, presently shut-in pending pipeline connection, with twelve wells adjacent to its Southern Star interconnect. Initial indications from the wells near the tap are positive: all have good gas shows and are expected to be productive wells. Hook-up of the wells is underway, and Canary expects to achieve commercial gas production and start realizing transportation fees in the second quarter of 2007.

Canary Resources Inc. is an independent Oil and Natural Gas Company engaged in the acquisition, exploitation, production and development of oil and natural gas properties in Johnson and Miami Counties, Kansas, and in Bates and Cass Counties, Missouri, for which it is the operator. Canary has offices in Houston, Texas, and Stilwell, Kansas.

Portions of this document include "forward-looking statements," which may be understood as any statement other than a statement of historical fact. Forward-looking statements contained in this document are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential" and similar expressions. Actual results may vary materially from management's expectations and projections expressed in this document. Certain factors that can affect the Company's ability to achieve projected results include, among others, production variances from expectations, uncertainties about estimates of reserves, volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund operations, environmental risks, drilling and operating risks, risks related to exploratory and development drilling, competition, government regulation and the ability of the Company to implement its business strategy. Copyright 2007. All rights reserved Canary Resources Inc.

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