'At this time Habanero has one of, if not the smallest market capitalization, of any public company that has exposure to the ALBERTA OIL SANDS'

Overview

Habanero is currently involved in several exciting projects including the multi-billion dollar OIL SANDS of Alberta, Canada. At this time Habanero has one of, if not the smallest market capitalization, of any public company that has exposure to the ALBERTA OIL SANDS, and when you factor in the current price of oil and gas and that Habanero currently has no long-term debt and has cash on hand for additional drilling and/or acquisitions, we feel Habanero merits attention.

Habanero is an emerging junior oil and gas producer company that is focused on high reward, low risk oil and gas exploration and production in North America. Habanero's goal is to become a mid-range oil and gas producer. Habanero has working interests in Alberta, Saskatchewan, and in Texas. Habanero currently earns oil and gas revenue from fifteen independent sources on its operations from multiple fields.

Investment Highlights

Production

ALBERTA

Oil Sands
 

Habanero has entered into an agreement to purchase an equity interest in a private Company that controls over 10,000 acres of land in the Peace River Oil Sands region of Alberta, Canada. According to a 51-101 compliant reserve report completed by DeGolyer and MacNaughton of Calgary on September 1, 2005, the current possible and probable barrels recoverable are 111,300,000. The property is very close to infrastructure including roads and power, as well there is a pipeline running directly through the property. There is likely a supply of condensate in the area for treating and blending for pipeline sales. The Company is planning a pilot plant for testing the recoverable reserve via Steam Assisted Gravity Drainage (SAGD) and the Company plans to file application to AEUB for the pilot plant during the 1st quarter of 2006. The Company plans to drill two additional wells as part of its current program and will undertake a 3-D seismic survey of the lands that will enable the Company to re-assess the size and extent of its reserves and administer its pilot project. At this time Habanero has taken an equity interest in the Company which it is negotiating to increase, but Habanero may have the option to participate in the development and exploitation of the prospect in the future.

According to the Canadian Association of Petroleum Producers web site, “production from Canada’s vast oil sands reserves now exceeds 1 million barrels per day and is forecast to increase to 2.7 million barrels per day by 2015. Reserves exceed 175 billion barrels of economically viable oil. With current technology, Canada’s oil sands are second only to Saudi Arabia in global oil reserves. Capital spending on both in situ areas (too deep to mine) and mining projects in the oil sands totaled more than $28 billion US from 1996 to 2004. Canadian companies will spend close to $7 billion US on oil sands capital investment in 2005. There are close to 35 projects in the planning or expansion process.”

Enchant Prospect
 

Habanero has entered into an agreement to participate in the Enchant Prospect in Alberta, Canada. Habanero has secured a substantial 25% net revenue interest (before royalties) in this prospect. This well has produced over 30,000 barrels of oil over 23 months of past production. The Enchant Well was re-worked and flowed oil for sales, but is currently shut-in. We have recently hired a new operator for this prospect and we expect to have a new test done on this well shortly.
 

Alberta accounts for 55% of Canada's oil production. Alberta's crude oil and equivalent production was 1,534,000 barrels per day in 2003. One half of Alberta's oil and gas is exported to the US, providing 5% of US oil consumption and 12% of natural gas consumption. The Oil and Gas Journal reported that Canada ranks second largest, only behind Saudi Arabia, in terms of global proven crude oil reserves at 15% of world reserves. The majority of these reserves are found in Alberta.
 

SASKATCHEWAN
 

Kerrobert Prospect
 

Habanero has an agreement to earn the right to participate in a proposed 50 oil well drill program in the prolific Kerrobert region of Saskatchewan, Canada. The Company drilled and cased nine wells on this property. All nine wells are currently producing oil and generating revenue for the Company. The oil is comparable to West Texas No 1. The experience by other oil companies in the area suggests an approximate fifteen year life for the shallow oil wells. We are hoping to get the next stage of drilling the remaining 41 wells in 2006.
 

Saskatchewan is one of the largest oil producers in Canada, second only to Alberta. The province produces approximately 20% of total Canadian oil production. Cumulative oil production from Saskatchewan as of December 31, 2000 was 3.6 billion barrels. Remaining recoverable reserves are estimated to be 1.2 billion barrels. More than 18,000 active wells in Saskatchewan produce in excess of 400,000 barrels of oil per day.
 

TEXAS
 

Martex Prospect

The Martex Prospect is located in Jack and Palo Pinto Counties, Texas. Seven wells have been drilled on this property, the Kinder #1 Well, the Martex Ima Bridges #2 Well, the Wimberley #3 Well, the Wimberley #5 Well, the Wimberley #7 Well, the Henderson #3 Well and the Stuart 60 #8 Well. The Ima #2 Well was successfully completed and is producing oil and gas. Gas was discovered in the Henderson #3 Well and after acidization gas started to flow at a rate of 300 thousand cubic feet per day. This rate was achieved without having to frac the well, as the operator previously thought was required. Completion work on the Wimberley #3 Well was completed, it flowed gas but it is currently shut-in awaiting a re-work. The Wimberley #5 Well was drilled, bond logs were run, it was fraced and has been successfully put on line for sales. The Wimberley #7 Well has also been successfully put on line for sales. The Company received a buy-out offer on the Ima Bridges #2 Well from Lexus Gas Corporation but decided to reject it. The Company drilled and fraced the Stuart 60 #8 Well, and it is currently producing gas. The Company is waiting for the operator to drill the Stuart 61 #11 Well on this prospect.

Green Ranch Prospect - Stephens County, Texas
 

The Green Ranch Prospect is a proposed 15 well program consisting of 4,131 acres of leasehold on the Green Ranch in Stephens County, Texas. This leasehold is located approximately 50 miles northeast of Abilene, Texas and approximately 10 miles northwest of Breckenridge, Texas, along the North Stephens-Shackelford County line. The Company has a 10% working interest in the first well, the Z1 well, which is currently producing gas revenue.
 

For more information on each of these prospects, please go to www.habaneroresources.com
 

Recent News and Press Releases

• Habanero to Attend San Francisco Investment Conference (Fri, Nov 25)
 

• Habanero Negotiating to Increase its Interest in the Oil Sands Prospect (Wed, Nov 23)
 

• Habanero to Participate in Oil Sands Prospect in Alberta, Canada (Thu, Nov 17)

• Habanero Negotiating on Multiple Oil & Gas Prospects Including Oil Sands (Tue, Oct 18)

• Habanero Resources Announces Pembina Well Successfully Fraced (Tue, Sep 13)
 

Contacts

Head Office

Habanero Resources Inc.
1205 - 789 West Pender Street
Vancouver, BC
Canada V6C 1H2
Telephone: (604) 646-6900
Fax: (604) 689-1733

HAO filings with SEDAR can be found here. All Fillings are current and the Company is fully reporting.

This report includes forward-looking statements that reflect Habanero Resources Inc. current expectations about its future results, performance, prospects and opportunities. Habanero Resources Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Habanero Resources Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.

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