CALGARY, Jan. 22 /CNW/ - NORTHERN SUN EXPLORATION COMPANY INC. (the
"Company") is pleased to provide an update to its exploration and capital
expenditure program for Alberta and Saskatchewan.
The Company has completed its 2007 drilling program for a total of 8
wells and upon initial completion results the Company expects to have economic
production from 7 of the wells. Production rates will be released after the
wells have been tied-in or equipped and producing for 14 days. Highlights by
area are as follows:
The 11-23-87-6-W6 well has been equipped with a pump jack in order to
manage the liquids and determine a stabilized gas and oil / water production
rate. Currently the well is producing - net to the Company - light oil at a
rate of 35 boepd, and the Company expects the gas rate to recover and
stabilize at approximately 0.4 MMscf/d (65 barrels of oil per day equivalent)
from the upper leduc zone.
The Company's 50% working interest 1-23-87-6-W6, 2250 meter multi-zone
test well drilled and completed in December is currently undergoing testing.
The Company is encouraged with the testing of the Gething zone where oil is
currently being swabbed and the well is being equipped with a pump jack in
order to manage the liquids and determine a stabilized gas and oil / liquids
production rate. The Company already tested both the Leduc and Charlie lake
zones with both zones proving to be uneconomic.
The Company drilled 2 multi-zone gas wells and 1 oil well at Grouard.
The completions of the wells result in likely two oil wells and one gas well.
The oil prospect remains to be tested within the next two weeks upon the
installation of temporary facilities. The gas well has been briefly tested and
is planned to be tied-in to a nearby company pipeline, and together with the
company's other existing stranded gas wells will form the basis and provide
economics for a gathering project which would see the currently stranded gas,
and all new volumes become tied-in to the local gas co-op so the wells can
produce near their full capacity. If the Company's 2 new oil wells produce at
economic rates, such oil production will be trucked to a terminal
approximately 25 miles away.
The Company drilled two exploration wells and completion results indicate
likely a gas well and an oil well. The gas well has been tested and the
Company is currently obtaining approvals to tie-in to a nearby third party for
gas production. The oil well will be tested in the next two weeks upon the
installation of temporary facilities. Production rates will be released upon
both wells producing for a period of at least 14 days in order to establish an
accurate rate of production. The Company paid 100% of all costs to earn a 65%
working interest in the wells.
The Company drilled and completed the multi-zone gas test well. The well
will be tied-in to a nearby third party operator within the next 10 days.
Production rates will be released on the well upon it producing for a period
of at least 14 days in order to establish an accurate rate of production and
capacity of the third party system. The Company paid 55% of all costs
associated with bringing the well into production to earn a 45% working
The Company's 100% working interest multi-zone gas test well on its
property in the Supreme / Arena area of southwest Saskatchewan is expected to
be tied-into to a nearby third party facility within the quarter. The well is
expected to produce at a rate of approximately 0.15 MMscf/d (25 boed).
Additionally, the Company has entered into an agreement with a current
joint venture partner to acquire its 50% working interest in 1,746 acres of
land in the Arena area of southwest Saskatchewan. Northern Sun will own 100%
of the sections and hold a 100% working interest in two existing gas wells.
The gas wells will be re-entered and stimulated for production at a later date
as part of the Company's further development program. The Company also
acquired a report commissioned in the 1980's which is an analysis of
Hydrocarbon Discoveries in the Mackenzie Basin, which relates to the lands
currently claimed, occupied, and managed by the Company's partner the Ka 'a'
Gee Tu First Nation in the NWT. The Company will issue 137,500 common shares
of the Company as consideration for the 50% working interest in 1,746 acres
land and the report.
Northern Sun is an Alberta-based exploration and production company with
operations in Alberta, Saskatchewan and the North West Territories.
ON BEHALF OF THE BOARD OF DIRECTORS OF
NORTHERN SUN EXPLORATION COMPANY INC.
President & CEO
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents of this news
For further information:
For further information: please contact the Company toll-free at (866)
827-2722, via email at email@example.com, or visit the Company website at