Indocan Resources Says Drilling to Commence at Abilene

ADDISON, Texas, Oct. 12  /PRNewswire-FirstCall/ -- Indocan Resources Inc (OTC:IDCN) today announces that Sunray Oil has commenced drilling of the first well at Abilene, Texas. Indocan Resources has a thirty percent stake with Sunray in this prospect. Sunray Oil Company, Inc. has acquired various leases in the East Merkel Area of northern Taylor County, Texas approximately 10 miles northwest of Abilene. The leases are located within a 55 square mile 3D seismic shoot that has identified at least 12 drill sites on the acreage. Once the 3D seismic has been evaluated for deeper horizons, it is anticipated that an additional 100 drill sites may be evaluated on acreage within the shoot area.

Total Reserves are estimated to be 4,931,800 net barrels having a combined future net revenue of an estimated $150,631,000 during the remaining productive life range of approximately 17 to 25 years.

Wells on the adjoining leases had initial production of over 100 barrels of oil per day (BOPD) on the average with some wells having initial production rates exceeding 1000 BOPD. Most of these wells flowed for over 5 years and 20 years later were still producing in excess of 25 BOPD. Production came from multiple pay zones that are the same zones expected from the East Merkel structures.

  More information is available at http://www.indocan.com/

  Company Info:  [phone], Jeffrey R Bruhjell, president

  CONTACT:  Investor Relations, [phone]


DATASOURCE: Indocan Resources Inc



CONTACT:  Jeffrey R Bruhjell, president of Indocan, [phone], or

Investor Relations, [phone]



Web site:  http://www.indocan.com/ 

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