Georox Acquires Trinidadian Oil-Prone Acreage

KELOWNA, BC, Sept. 13 /CNW/ - Georox Resources Inc. ("Georox" or the "Company") (GXR:TSX-V; OF6A:FRA) is pleased to announce that its Trinidad and Tobago subsidiary "Gulf Central Limited", was the successful bidder in the recent comprehensive bid for the North Marine Block located in the Gulf of Paria offshore Trinidad and Tobago ("NM Block" or "North Marine Block"). Gulf Central Limited, ("GCL") is a new company owned 80% by Georox and 20% by Carbon Dioxide Caribbean Holdings Ltd (CDCH). CDCH is a member of the Krishna Persad & Associates (KPA) Group. The KPA Group's founder & CEO, Dr. Krishna Persad, has been engaged in oil and gas exploration and production, and in intensive research on the petroleum geology, tectonic history and petroleum geochemistry of the surrounding Trinidad area for over 40 years. The award of the NM Block is subject to the approval of the bid terms by the government of Trinidad & Tobago.

The North Marine Block is located in less than 30m of water and is approximately 205 sq km (50,000 acres) in size. Twenty two wells have been drilled in the NM Block between 1955 and 1968 over the acreage on the previously State owned Petrotrin operated property. A 3D seismic survey covering 454 sq km (covering the entire NM Block) was acquired and processed in 2004. Normal faulting is a common fault style throughout the North Marine Block.

The closest fields to the North Marine Block are Brighton (to the immediate east), which has accumulated production of 125 million barrels of oil, and the 3 Soldado fields (to the south), which have accumulated production of 775 million barrels of oil to-date and currently produce over 20,000 bopd. The Soldado fields have accounted for a large percentage of the Trinidad & Tobago oil production to-date. In the Soldado fields, oil zones in the Manzanilla Formation reservoirs are generally heavy with API's in the 12 - 20 degree range. Individual sands in the Manzanilla Formation can be up to 100 feet thick, with porosities greater than 30%. Within the NM Block 3 oil pools have been identified by historic drilling and individual initial well productivity in excess of 500 bopd has been recorded. Preliminary review of the 3D-seismic has identified 2 - 3 additional oil pools in the NM Block, which will have to be confirmed by the detailed seismic study. Total accumulated production from the NM Block to-date is only 1,300,000 bbls which is estimated to be only 0.2 to 0.3% recovery of the OOIP. Enhanced Oil Recovery ("EOR") is important in the production of this 12 - 20 degree API heavy oil and it is proposed to use ("CO2/EOR") methods that have been proven in Canada and in Europe. There are abundant quantities of CO2 from ammonia plants on the mainland of Trinidad which can be utilized in EOR programs.

The Production Sharing Agreement offered by GCL for the NM Block includes a Phase 1 (3 years) Minimum Work Programme composed of : 1) a geophysical component (re-interpretation on the entire 454 sq km grid ran in 2004 plus an Inversion on 50 sq kms of the data; 2) a multi-disciplinary geological study; 3) a complete cycle of Huff & Puff CO2/EOR on an existing well in the NM2 field (NM18) accompanied by comprehensive testing; and 4) the drilling of one well within the area known as the NM1 field to a vertical depth not less than 1750 meters or the top of the Pre-Manzanilla (the location to be decided after completion of the geophysical and geological studies). The estimated cost of Phase 1 is $20,000,000 US. The Company expects to meet its financial obligations through progressive rounds of equity financing, possible debt financing and to the extent and not available, through the engagement of partners in the project. The Government of Trinidad and Tobago will have a 20% carried participation in the 1st four years of the exploration period. Future exploration, following the Geological, Geochemical & Geophysical studies, will determine the presence of additional oil accumulations in the Manzanilla age reservoirs. There is no assurance that GCL will obtain final approval of its bid terms or that negotiations will be satisfactorily concluded, or concluded on proposed terms for the grant of a licence on the NM Block.

Mr Burkhard Franz, CEO & President of Georox Resources, is completely ecstatic on the success of this Acquisition as this marks a major expansion of Georox's oil and gas Exploration endeavours from Western Canada to an International oil and gas jurisdiction. Mr Franz noted that Trinidad & Tobago presents a stable, active oil and gas environment with a recently improved fiscal regime for oil and gas exploration which presents Georox with a platform for significant upside and engagement of financial partners in its efforts.

Certain statements in this press release are forward-looking statements. Specifically, forward-looking statements relating to management's approach to operations, estimates, business plans for drilling and development, estimated amounts and timing of capital expenditures, anticipated operating costs, royalty rates, 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 Georox 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 the 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; decision or approvals of administrative tribunals; risks in conducting foreign operations; the effect of acts of, or actions against international terrorism; and other factors, many of which are beyond the control of Georox. There is no representation by Georox that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.

For further information: Burkhard Franz, Georox Resources Inc., [phone] or visit the Company's website at www.georoxresources.com