ANG Angel Gold Corp

CALGARY, Nov. 1 /CNW/ -- TSX-V SYMBOL: ANG CALGARY, Nov. 1 /CNW/ - Under a farmout arrangement with our industry partner, AltaCanada operated and participated in two wells on its substantial Montana block comprising approximately 390,000 contiguous gross acres to evaluate oil potential in the Shaunavon and Bakken formations. The two wells were drilled 22 miles apart. A. A Bakken stratigraphic test well, 12B-26, was drilled to 4720' and a 60-foot core was taken over the entire Bakken interval. Through a farmout arrangement of a 9 section block, we participated for 12% of drilling and completion costs, retaining a 30% interest in the farmout block. In preliminary core analysis, 4 of 22 plug samples showed oil saturation of greater than 10% with maximum saturation of 24%. Log evaluation indicated an average porosity of 6.2% and a maximum of 16% over the Bakken interval. Reservoir quality in the Bakken sequence was present and better than expected. The analyzed oil show in the uppermost Bakken sand clearly supports the hypothesis that oil migrated through this basin leading to the possibility that significant Bakken oil is trapped against the updip truncated edge on AltaCanada's existing land base. Further drilling is anticipated. The farmee retains a rolling option, with election in 90 days, to earn additional 9 section blocks by drilling another well paying 80% of our costs for 50% of our interest. The well was cased for evaluation of uphole shallow gas. B. A Lower Shaunavon test well, 7-2, was drilled to 4300´ on a 3-D seismic feature, and penetrated 12 feet of greater than 9% porosity in the Shaunavon sand and contained significant oil saturation in the core. However, the Shaunavon sand was encountered approximately 15 feet lower than anticipated on seismic. As a result, upon completion this well produced mostly water with oil cuts reaching a maximum of 30% before falling off. The well is presently suspended. Based upon the company's limited seismic program to date, there are 14 additional 2-D seismic anomalies that have been identified on the company's lands. Future drilling activity will be directed to targets higher structurally to achieve commercial oil production. The Bakken well and the Lower Shaunavon well represent significant developments for AltaCanada. Prior to pursuing these oil targets, AltaCanada was focused upon building a large land base in Montana, drilling low risk shallow natural gas targets and putting in place production infrastructure. Following the international financial crisis and a sustained period of low natural gas prices AltaCanada became substantially inactive and there was serious erosion of the value of the company's equity and of our borrowing base with the National Bank. AltaCanada commenced a strategic sales process with CIBC World Markets in September of this year to either sell AltaCanada, find suitable merger candidates, or locate investment capital to reorganize the Corporation. Proposals are due on November 2(nd). One hundred and eleven companies have been contacted through this process. An extension of our fourth Amended and Extended Forbearance Agreement was executed on October 29, 2010 including consent to a receivership order that could be exercised by the Bank if the strategic process is not successful in the Bank's discretion on November 2, 2010. As described in our quarterly report, we have no assurance that the Bank will continue to provide financing. The Bank has cooperated with Alta Canada in permitting the Company to proceed with the current drilling program. The Corporation is engaged in the acquisition, exploitation and production of crude oil and natural gas reserves in Western Canada and Montana. For more information on the Corporation, visit www.altacanada.com. 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. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/November2010/01/c7869.html table border="0"trtd /td tdDon Foulkes, President & CEO  /td tdDon Jackson, Exec VP & COO/td/tr trtdTelephone:/td td(403) 265 9091 (ext 248)/td td(403) 265 9091 (ext 234)/td/tr trtdFax:/td td(403) 265 9021/td td(403) 265 9021/td/tr trtdEmail:/td tda href="mailto:Info@altacanada.com"info@altacanada.com/a/td tda href="mailto:Info@altacanada.com"Info@altacanada.com/a/td/tr/table

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