|July 11, 2008|
|Crossfield Area, Alberta (Twp 28 Rge 1 W5M)|
Berkley Resources Inc. (the "Company") announces that it has sold twenty-five (25%)percent participation in its Crossfield Project to an individual, in an arms length transaction, for the sum of $300,000. The Company estimates that it will cost approximately $6,000,000 to licence, drill, complete and tie-in the first of four wells planned for this Project. Each of the subsequent three wells are expected to cost about $5,000,000 for total exposure to 100% interest being $20/22,000,000. The new Participant is a well financed individual, experienced in oil and gas investments. He will be a significant asset to the Crossfield Project. The Company now holds between 35% and 50% interest in this Project which is a well defined, seismically controlled, sour-gas prospect in the Crossfield member of the Wabamun formation. This is the same formation that has produced nearly 1 tcf (one trillion cubic feet) of its projected 1.8 tcf of
natural gas reserves from the giant Crossfield gas field situated two to five miles east of the Berkley et al prospect which in turn is about 25 miles north of the City of Calgary. The Company now plans to move forward with the licencing process which will include a public hearing later this year. Success there would enable the parties to commence drilling during the first quarter, 2009.
Senex Area, Alberta (Twps 92/93 Rges 6/7 W5M)
The Company holds 20% interest in 20 wells in this Area. Its 80% interest partner (operator) is regrouping as it develops a go-forward plan that would likely include a new operator with new investment. Berkley would be open to further participation with respect to its 20% share if a qualified Operator/Farmee is found. High operating costs plague this project, however the Company believes that with good planning and close attention to costs, much of the large oil reserve identified to date can be produced within reasonable economic parameters.
ON BEHALF OF THE BOARD
Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
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