London, ON – June 20, 2007 - Echo Energy Canada Inc. (EEI: TSXV-Tier 1) is pleased to announce successful flow testing of two Thorold/Grimsby wells drilled this year. The two wells are located close to the company’s existing gathering system in Bayham Township in southwestern Ontario. In addition to these successful wells, the company is continuing to drill additional wells targeting the Thorold/Grimsby zone under the company’s leased acreage.
Echo 52 penetrated a very good quality Thorold gas zone that was flow tested on June 6, 2007. Based on the interpretation by (JMPEL) Jim McIntosh Petroleum Engineering Ltd., Echo’s consulting petroleum engineer, an initial flow potential for this well into pipeline of up to one million cubic feet per day (1,000 Mcfd) can be expected. This magnitude of initial flow rate would enhance the flow rate through Echo’s system. Relative to other Thorold/Grimsby wells in southwestern Ontario, this well shows excellent flow rate potential. The “average” producing rate from Thorold/Grimsby gas wells in the area is 20 to 100 Mcfd, so Echo 52 shows much better flow rate potential based on initial testing. This well will be tied into the Echo system as soon as possible.
Echo 59 was also flow tested on June 6, 2007. Although not as good a flow rate as the Echo 52 well, this well is still a good well by Thorold/Grimsby standards, and will be tied into the company’s gathering system this spring or summer. This unstimulated zone was initially flow tested at a rate of about 50 Mcfd. This producing rate should improve with a successful sand frac, which is planned for later on this year.
While drilling the Echo 59 well, Echo encountered slightly sour natural gas in the uphole Guelph carbonate zone. This reservoir is a new horizon for the company, with no reserves currently assigned to this horizon. The company is evaluating tie-in options to deliver the slightly sour gas to the nearby Talisman operated Lakeview compressor station. Talisman has compression facilities at the Lakeview site, with sour natural gas delivered to their sweetening facilities near the town of Morpeth, south of the city of Chatham. Echo would arrange with Talisman to custom treat and process the natural gas and would still market the natural gas at Talisman’s sales point from the Morpeth plant.
Investors are also asked to visit the Echo Energy IR Hub at www.agoracom.com/IR/EchoEnergy where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to EEI@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.
About Echo Energy Canada Inc.
Echo Energy Canada Inc. is a publicly traded energy company with revenue producing natural gas production operations near Port Burwell Ontario, Canada on the shores of Lake Erie. Echo Energy has a significant equity interest in Echo Power Generation Inc., which is moving forward with pre-construction activities to develop wind energy projects in Ontario. Total shares outstanding: 52,779,515
Company Contact
Mr. Gary Conn
President & C.E.O.
Echo Energy Canada Inc.
(519) 455-6061
gconn@echoenergycanada.com
www.echoenergycanada.com
Retail Investor Inquiries
AGORACOM Investor Relations
http://www.agoracom.com/IR/EchoEnergy
EEI@agoracom.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Certain statements in this press release are forward-looking statements including specifically forward-looking statements relating to management’s approach to operations, estimates of future sales, production and deliveries, business plans for drilling and development, estimated amounts and timing of capital expenditures, anticipated operating costs, royalty rates, cash flows, transportation plans and capacity, anticipated access to infrastructure or other expectations, beliefs, plans, goals, objectives, assumptions and statements about future events or performance. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable by Echo at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil and gas prices; the results of exploration and development drilling and related activities; the uncertainty of estimates and projections relating to productions, costs and expenses; uncertainties as to the availability and cost of financing; fluctuations in currency exchange rates; the imprecision in reserve estimates; risks associated with oil and gas operations, such as operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the weather in the Company's area of operations; the ability of suppliers to meet commitments; changes in environmental and other regulations; actions by governmental authorities including changes in laws and increases in taxes; decisions or approvals of administrative tribunals; the effect of acts of, or actions against international terrorism; and other factors, many of which are beyond the control of Echo. There is no representation by Echo that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.
