North Peace Provides Pilot Project Update



    TSX-V: NPE

    CALGARY, Oct. 27 /CNW/ - North Peace Energy Corp. ("North Peace" or the
"Company") is pleased to confirm that construction of its Red Earth Cyclic
Steam Stimulation ("CSS") pilot plant is advancing as planned. Recent pictures
of the construction progress are available on the Company's website.
www.northpec.com/operations/photo_gallery.html
    North Peace anticipates steam injection will begin with the L2 horizontal
well during December 2008. After completion of the steam injection cycle in
the L2 well, steam injection into the L1 horizontal well will commence. The
individual steam injection cycles are expected to last six to eight weeks.
Initial production response will commence following steam injection and each
well is expected to produce for approximately six to nine months. The steaming
and production cycles will then be repeated.
    The Company will be evaluating steam stimulation and production
performance data throughout the steam injection and production cycles of both
wells. The Company will utilize this data in evaluating the feasibility of a
commercial project. In the second half of 2009, assuming technical conclusions
and industry conditions support an economic project, the Company expects to
submit an application to the Energy Resources Conservation Board ("ERCB") for
the first 10,000 bbl/d phase of its targeted 30,000 bbd/d commercial project.

    An updated corporate presentation is available at:

    www.northpec.com/documents/presentations/NPE-2008-Q4-corporatepresentatio
n.pdf

    About North Peace

    North Peace has an early stage in-situ oil sands play in northern Alberta
with an estimated 2 to 3.1 billion barrels of Discovered Petroleum
Initially-In-Place. The Company has a 100% working interest in 86,400 acres of
Crown oil sands leases at Red Earth Creek in the Peace River area. The lands
have the benefit of over 300 legacy logs and are surrounded by accessible oil
and gas production infrastructure. The target Bluesky zone is a regional sand,
deposited in a near shore marine environment at approximately 400 metres
depth. The initial focus area at Red Earth Creek has 24 contiguous land
sections with 10 to 16 metres of oil bearing thickness, sufficient to advance
a 30,000 bbl/d commercial project. North Peace is currently advancing the
development of its resource using a robust and proven in-situ thermal recovery
process, Cyclic Steam Stimulation ("CSS").

    Discovered Petroleum Initially-In-Place

    Discovered Petroleum Initially-In-Place (equivalent to Discovered
Resources) is that quantity of petroleum that is estimated, as of a given
date, to be contained in known accumulations prior to production. The
recoverable portion of Discovered Petroleum Initially-In-Place includes
production, reserves, and contingent resources. There is no certainty that the
Discovered Petroleum Initially-In-Place will ever be produced.

    Forward-Looking Statements: Certain statements contained in this news
release constitute forward-looking statements that involve known and unknown
risks, uncertainties and other factors that may cause actual results or events
to differ materially from those anticipated in such forward-looking
statements.
    In particular, this news release contains forward-looking statements
pertaining, directly or indirectly, to the following: business and operations
strategies including the completion of North Peace's pilot project and
potential commencement of a subsequent commercial project.
    The forward-looking statements contained in this news release are based
on a number of expectations and assumptions that may prove to be incorrect. In
addition to other assumptions identified in this news release, assumptions
have been made regarding, among other things: that North Peace will continue
to conduct its operations in a manner consistent with past operations; the
continuance of existing (and in certain circumstances, proposed) tax and
royalty regimes; the general continuance of current industry conditions; the
accuracy of the estimates of North Peace's resource volumes; the ability of
North Peace to obtain equipment, services and supplies in a timely manner and
within budget to carry out its activities; the timely receipt of required
regulatory approvals; the ability of North Peace to obtain financing on
acceptable terms; future oil and gas prices and future cost assumptions.
    No assurance can be given that these expectations will prove to be
correct and such forward-looking statements included in this release should
not be unduly relied upon. Actual results could differ materially as a result
of changes in North Peace's plans, changes in commodity prices, regulatory
changes, general economic, market and business conditions as well as
production, development and operating performance and other risks associated
with oil and gas operations including anticipated success of resource
prospects and the expected characteristics of resource prospects; anticipated
capital requirements, project rates of return and estimated project life;
estimates of original discovered resource; estimates of recovery factors; lack
of diversification; and overall technical and economic feasibility of the
Company's project. These statements speak only as of the date of this release
or as of the date specified in the documents accompanying this release, as the
case may be.
    The Company undertakes no obligation to publicly update or revise any
forward-looking statements except as expressly required by applicable
securities laws.

    
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this news release.
    

    %SEDAR: 00019211E




For further information:

For further information: Louis Dufresne, President and CEO, James
Glessing, Vice President, Finance & CFO, North Peace Energy Corp., 470, 505 -
3rd Street SW, Calgary, Alberta, T2P 3E6, Telephone (403) 262-6024, 
Facsimile: (403) 262-6072, E-mail: info@northpec.com, www.northpec.com; Or
Stephanie K Mesher, Bryan Mills Iradesso, (403) 503-0144 ext. 216,
smesher@bmir.com

Organization Profile

NORTH PEACE ENERGY CORP.

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