TSX Venture Exchange Symbol FNR
SASKATOON, July 20, 2012 /CNW/ - 49 North Resources Inc. ("49 North" or
the "Company") (TSXV: FNR) announces its 100% owned subsidiary, Allstar
Energy Limited ("Allstar"), has successfully completed a second
re-entry well at its Crown acquired Riverside lands near Leader,
Saskatchewan. The well has been producing heavy oil at a stabilized
rate of 60-70 bopd (barrels of oil per day).
Mr. Ashley Drobot, P.Geo, President and CEO of Allstar reports that
after removing the abandonment plug and equipping the well bore for
pumping, the targeted formation has been performing above initial
expectations. Much like the first re-entry well in the program, the
second well had initial 24 hour pump tests in excess of 100 bopd. The
second well was subsequently restricted and has produced at a
stabilized rate of approximately 60-70 bopd for in excess of 30 days.
Given favorable pressures and fluid levels evident in the well bore,
Allstar recently increased the pump rate on this well to approximately
100 bopd. Combined production from both wells now falls in a range of
160-170 bopd at the Riverside property.
Allstar's large land base, along with the recently acquired
infrastructure within the Riverside properties, has positioned Allstar
to become one of the leaders in developing this extensive heavy oil
opportunity. Furthermore, Allstar has successfully incorporated new
pumping methods and equipment that have shown to vastly improve
operations and production over previous activities in the area.
The neighboring Mantario oil field 20 kilometers north of Allstar's
Riverside property has been producing heavy oil since the early 1990's
with cumulative production in excess of 47 million barrels of oil. The
fields continue to produce oil with the help of secondary recovery
methods such as water and polymer flooding.
As was disclosed in the press release of May 22, 2012, Allstar now holds
approximately 31,360 acres in the vicinity of Leader, Saskatchewan,
which is collectively referred to as the Riverside properties. In
aggregate, Allstar now owns or has exclusive exploration and
development permits covering approximately 58,000 acres of highly
prospective Viking oil, Viking gas and heavy oil lands all located in
West Central Saskatchewan.
49 North is a Saskatchewan focused resource investment company with
strategic operations in financial, managerial and geological advisory
services and merchant banking. Our diversified portfolio of assets
includes direct project involvement in the resource sector, as well as
investments in shares and other securities of junior and intermediate
mineral and oil and gas exploration companies. Additional information
about 49 North is available at www.sedar.com.
Forward Looking Information: This release contains forward-looking
information within the meaning of applicable Canadian securities
legislation. Forward-looking information involves known and unknown
risks, uncertainties and other factors that may cause actual results or
events to differ materially from those expressed or implied by such
forward-looking information, including the availability of adequate and
secure sources of funding to complete, equip and bring the new well
on-stream, prevailing commodity prices and the performance of 49 North
personnel. In addition, the forward-looking information contained in
this release is based upon what management believes to be reasonable
assumptions. Readers are cautioned not to place undue reliance on
forward-looking information as it is inherently uncertain and no
assurance can be given that the expectations reflected in such
information will prove to be correct. The forward-looking information
in this release is made as of the date hereof and, except as required
under applicable securities legislation, 49 North assumes no obligation
to update or revise such information to reflect new events or
Neither 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.
SOURCE 49 North Resources Inc.
For further information:
49 North Resources Inc.
President and Chief Executive Officer
306-653-2692 or firstname.lastname@example.org.