July 6, 2010: Zone Resources Inc. (TSX-V: ZNR) (Zone) has completed the assessment work on its first past producing oil
well in Overton County, Tennessee. Zone drilled to a final depth of 1,610 feet and although marginal amounts of crude oil were
encountered, the existence of saltwater would make completion of the well bore cost prohibitive. The bottom formation of saltwater could
be largely shut off by a series of production plugs; however, there would be no reasonable guarantee that water would not migrate through
the fracture networks into the upper levels of the well bore.
As a result of the presence of saltwater in this particular area, the second planned drill site near this location will not be commenced
at this time. Zone is currently conducting a sub-surface study to investigate possible locations for the second drill site where the salt
water is less likely a factor.
The initial drill site is currently being reclaimed to its original grade and the well bore will be plugged in accordance to the State of
Tennessee specifications.
General Project Overview
Zone is reviewing the databases from the Tennessee Oil and Gas Board to research the potential of identifying and acquiring abandoned oil
and gas wells, as well as, exploiting other underdeveloped leases. Upon initial review of the data bases and various field inspections,
numerous abandoned wells believed to have potential for re-entry and rehabilitation were identified.
These re-entry projects are considered to have a lower than average industry risk and have the ability to build a stable, predictable and
long lasting revenue stream. This objective can be achieved in two ways: (1) drilling shale natural gas wells and by (2) acquiring
abandoned oil wells or under-developed assets for the purpose of rehabilitation.
As with all ventures in the energy sector, projects of this nature involve risk and there is always the possibility of irreversible loss.
In order to mitigate some of this risk, Zone will try to diversify the wells for rehabilitation in different oil fields and geological
regions.
About Zone Resources Inc.
Zone Resources Inc. is in the business of evaluating and acquiring oil and natural gas properties for exploration and development. The
Company's shares trade on the TSX Venture Exchange under the symbol ZNR.
FOR FURTHER INFORMATION ABOUT THE COMPANY, PLEASE CONTACT:
Zone Resources Inc.
Vancouver Office
Archie Boyce, Director
Email: archie@zone-resources.com
Telephone: (604) 683 5445 ext 227
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.
Cautionary note:
This report contains forward looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all
other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements
involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results
may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not
limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically
prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be
shown to be economically and legally producible under existing economic and operating conditions.