Breaking News:
Western Potash Identifies Hydrocarbon Potential at Milestone, Secures Private Land Rights. PDF Print E-mail
Wednesday, 17 February 2010 17:05

VANCOUVER–(BUSINESS WIRE)–Western Potash Corp. (the “Company”) (TSX.V: WPX, FSE: AHE) has received
a very encouraging report from an oil and gas consultant commissioned to
evaluate drill hole data collected during the Company’s definition
drilling program at its Milestone project in Saskatchewan. A total of 9
wells have been drilled at Milestone while defining the new potash
resource
, (link to news release), which was reported previously on
February 2, 2010. The down-hole geophysical logs have indicated the
presence of neutron-density crossovers (neutron capture) in two zones in
all 9 wells. A close inspection of the neutron capture, combined with
data on lithology and porosity indicate the presence of hydrocarbons.
The wells along this indicated hydrocarbon zone span a distance of 18.5
kms in strike length.

“the possibility of
having sizable natural gas pools sitting on the door step of our Potash
deposit would represent a significant advantage to any future plans to
develop the Milestone potash resource”

The data was evaluated by J.R. Britton, P. Geol., P. Eng., a petroleum
geologist with over 40 years experience in the basin. Mr. Britton’s
interpretation shows that two of the formations have significant areas
of possible natural gas. In his report, further work is recommended
including the completion of additional test wells to collect pressure,
gas quality, and deliverability data in order to reduce investment risk
and assess the natural gas production potential of this area.

The company wells were drilled to hydrocarbon industry standards where
lithology and down-hole logs, including resistivity, sonic, neutron
density and caliper logs were recorded for all the formations drilled
from surface casing to just below the Potash beds.

Patricio Varas, CEO of the company commented that:” the possibility of
having sizable natural gas pools sitting on the door step of our Potash
deposit would represent a significant advantage to any future plans to
develop the Milestone potash resource”. The supply of natural gas is key
to the economics of Potash resource extraction as solution mining and
the subsequent refining processes are energy intensive. The company
contemplates that should production of hydrocarbons be possible and
viable, that any production in excess of Western’s energy needs to run
its potash operations would be sold into the existing gas pipeline
infrastructure. The Trans Canada Pipeline lies adjacent to the potential
natural gas zone.

Management is excited about this prospect and is formulating a strategy
to move forward with this opportunity. The first step in this strategy
has been to secure all the available private oil and gas rights in the
Milestone area. To this effect, the Company has been actively acquiring
the PNG (petroleum natural gas) rights from private landowners as part
of its potash land acquisition strategy at Milestone, which covers 65%
of the prospective area. The Crown PNG rights are currently unavailable
as they are located within the Company’s currently active potash
exploration permits, and are not subject to Provincial PNG land sales.

The next step will be to drill and test the interpreted hydrocarbon
zones. The Company is investigating doing this on a 100% basis or
through a joint venture with an Oil and Gas third party, utilizing
standard hydrocarbon industry JV and option agreements. The Company will
keep the right to extract the natural gas for Potash production at cost,
which ever strategy is chosen.

About Western Potash

Western Potash Corp. is a mineral exploration company engaged in the
evaluation, exploration and development of potash mineral properties in
Western Canada. The Company intends to define and develop a world-class
potash deposit in an ecologically sustainable, economically efficient
and socially responsible manner.

The contents of this news release was reviewed and approved by J.R.
Briton, P. Geol., P. Eng., a Qualified Person under NI 51-101 Rules and
Policies.

For more information on Western Potash Corp.’s projects, please visit
the Company’s website at: www.westernpotash.com

ON BEHALF OF THE BOARD OF DIRECTORS

“J. Patricio Varas”
J.
Patricio Varas
President and CEO

This news release contains Forward Looking Statements regarding our
intentions and plans. Forward looking statements in this news release
include that it has received a very encouraging report from an oil and
gas consultant where the down-hole geophysical logs at Milestone have
indicated the presence of neutron-density crossovers (neutron capture)
in two zones in all 9 wells drilled; that a close inspection of these
neutron capture crossovers, combined with data on lithology and porosity
indicate the presence of hydrocarbons; that the data evaluated and
interpreted by J.R. Britton, P. Geol., P. Eng., shows that two of the
formations have significant areas of possible natural gas; that further
work is recommended including the completion of additional test wells to
collect pressure, gas quality, and deliverability data in order to
reduce investment risk and assess the natural gas production potential
of this area; that the company wells were drilled to hydrocarbon
industry standards where lithology and down-hole logs, including
resistivity, sonic, neutron density and caliper logs were recorded for
all the formations drilled from surface casing to just below the potash
beds; that Patricio Varas, CEO of the company commented that:” the
possibility of having a sizable natural gas pool sitting on the door
step of our Potash deposit would represent a significant advantage to
any future plans to develop the Milestone potash resource”; that the
supply of natural gas is key to the economics of Potash resource
extraction as solution mining and the subsequent refining processes are
energy intensive; that the company contemplates that should production
of hydrocarbons be possible and viable, that any production in excess of
Western’s energy needs to run its potash operations would be sold into
the existing gas pipeline infrastructure; that Management is formulating
a strategy to move forward with this opportunity, initially securing all
the available private oil and gas rights in the Milestone area; that the
Company has been actively acquiring the PNG (petroleum natural gas)
rights from private landowners as part of its potash land acquisition
strategy at Milestone; that the next step will be to drill and test the
interpreted hydrocarbon zones; that the Company is investigating doing
this on a 100% basis or through a joint venture with an Oil and Gas
third party; that the Company will keep the right to extract the natural
gas for Potash production at cost, which ever strategy is chosen. It is
the Company’s policy not to update forward looking statements. Various
factors may prevent or delay our plans, including but not limited to,
contractor availability and performance, weather, access, mineral prices
and success and failure of the exploration and development carried out
at various stages of the program. Readers should review risk factors
applicable to junior mining exploration companies generally to
understand the variety of risks that can affect the Company.

“Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this
release.”

Excerpt from:
Western Potash Identifies Hydrocarbon Potential at Milestone, Secures Private Land Rights.

 

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