North Peace Updates Discovered Resource Estimates



    TSX-V: NPE

    CALGARY, April 26 /CNW/ - North Peace Energy Corp. ("North Peace" or the
"Company") announces an updated resource evaluation as at December 31, 2006
    Sproule Associates Limited ("Sproule") has provided an independent report
dated December 31, 2006. The updated report confirms the previously disclosed
estimate of discovered bitumen-in-place resources in the order of 2 to
3.1 billion barrels, based on a technical review of geological mapping
provided by the Company. This report takes into account data collected from
logs and core samples from the seven stratigraphic wells drilled by the
Company to the end of 2006. The resource was classified according to the
Canadian Oil and Gas Evaluation Handbook ("COGEH") definition of discovered
resource.
    North Peace's president, Louis Dufresne, commented, "The Company started
out with an exploration play and through our drilling activity we have
demonstrated the presence of significant discovered resource. The Sproule
report provides independent third party verification. Based on this
independent evaluation and management's own assessment of the project, the
Company intends to proceed with a disciplined resource development plan."
    The Company has also completed an internal analysis of the two most
recent wells drilled during the first quarter of 2007 in the previously
untested northwest area of the Company's land base. Evaluation of these two
wells supports management's initial expectation of potential recovery under
thermal drainage with seven to ten metres of bitumen thickness.
    The Company's internal resource characterization study and high graded
mapping of the target Bluesky zone have now been completed. The southern
portion of the Company's block B has been identified as the most prospective
area for a thermal recovery project on the Company's lands. Block B (south)
totals 28,800 gross acres (20,160 net acres) and, based on the Sproule report,
contains an estimated discovered bitumen-in-place resource of 1 to 1.6 billion
barrels. The reservoir and fluid data acquired from the seven wells drilled in
this area have demonstrated good reservoir quality and saturations of possible
commercial interest. With these encouraging initial results and the updated
resource report, the Company will investigate if the bitumen is recoverable
and, if so, by which methods.
    Modeling is being advanced internally to determine the type of thermal
project, project economics, funding requirements and timing. The Company is
also currently developing an analog based on other western Canadian producing
thermal projects. If results support the internal resource characterization
study, a determination will then be made as to which type of pilot scheme will
be best suited to determine economic viability. A delineation program will be
developed to further define the discovered resource and determine the optimal
location for the pilot.
    The internal resource characterization study has also identified other
areas with exploration potential and a portion of future spending will be
allocated to exploration in Company owned areas where no drilling has yet been
undertaken.

    Discovered Resources, per COGEH, are those quantities of oil and gas
estimated on a given date to be remaining in, plus those quantities already
produced from, known accumulations. Discovered resources are divided into
economic and uneconomic categories, with the estimated future recoverable
portion classified as reserves and contingent resources, respectively. No
proved or probable reserves have been assigned to the lands at this time
because the bitumen has not been shown to be economically recoverable. As
North Peace is in the early stages of the project, the resources have not yet
been shown to be recoverable or unrecoverable, thus, they have been classified
as discovered resources and reported as in-place volumes. There is no
certainty that it will be economically viable or technically feasible to
produce any portion of the reported discovered resources.

    Forward-Looking Statements: Certain statements contained in this 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.
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.

    About North Peace

    North Peace Energy is an early stage oil sands company with land and
assets bridging the Athabasca and Peace River oil sands areas of northern
Alberta.

    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; Stephanie K
Mesher, Bryan Mills Iradesso, (403) 503-0144 ext. 216, smesher@bmir.com

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NORTH PEACE ENERGY CORP.

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