Canadian Oil

[Tackler]

Tajzha Ventures to acquire Davey Lake property

2007-06-21 07:23 MT - News Release

Mr. Terry Lashman reports

TAJZHA VENTURES ACQUIRES DAVEY LAKE PROPERTY

Tajzha Ventures Ltd. has entered into an agreement with an arm's-length company to purchase producing oil and gas assets in the Davey Lake area of Alberta for total consideration of $4.15-million to be paid in cash. The effective date of the purchase is April 1, 2007, and Tajzha has paid a $415,000 non-refundable deposit to the vendor.

Tajzha has entered into a participation agreement with several arm's-length parties and a company controlled by Ben van Rootselaar, a director of Tajzha, whereby the parties have agreed to acquire 50 per cent of the assets from Tajzha for $2,075,000. Each of the parties will pay their pro rata share. Mr. van Rootselaar is acquiring a net 3-per-cent interest in the assets for $124,500. Tajzha will be the initial operator of the property.

Tajzha is currently negotiating financing for the balance of the purchase price. Closing of the transaction is scheduled for July 4, 2007, and is subject to certain conditions customary for this type of transaction including but not limited to TSX Venture Exchange approval.

The properties consist of a 100-per-cent working interest. Production from the property is 78 barrels of oil equivalent (boe) per day (39 net Tajzha) of oil and liquids and 344,000 cubic feet per day (172 net Tajzha) of gas for a total of 136 boe per day (68 net Tajzha) from 17 producing wells. Production is obtained from the Basal Belly River pool at a depth of approximately 1,220 metres. Tajzha has also had an independent reserve evaluation prepared.

Tajzha has identified a combination of well workovers, recompletions, infill and step-out drilling, waterflood optimization and reconfiguration, and coal bed methane drilling on the property.