TSX Venture Exchange symbol FNR
SASKATOON, Feb. 10 /CNW/ - 49 North Resources Inc. ("49 North") (TSX
Venture: FNR) is pleased to provide an update following the first
ninety days of production from Allstar Energy Limited's five "Phase 1"
Viking horizontal wells. Allstar Energy Limited ("Allstar") is a
private company of which 49 North owns 89.5% of the issued and
outstanding common shares.
Ashley Drobot, P. Geo, President and CEO of Allstar Energy Limited,
reports that Allstar's initial combined production rate from the "Phase
1" horizontal drilling at Kindersley is approximately 300 BOE/day with
all 5 wells pumping at optimal capacity. Allstar's management is very
pleased with the production that is being maintained following the
initial 90 days.
In addition to the current production, Allstar has finished completion
operations on the five "Phase 2" wells at Kindersley announced on
December 15, 2010. These 5 wells are currently being brought on
production and will be tied into the 100% Allstar owned oil and gas
processing facility once pressure levels at each of the new wells
stabilize. With these new wells and the existing 5 "Phase 1" horizontal
wells that are currently on production, the company anticipates
reaching a target production rate in excess of 600 BOE/day by end of
The company plans to drill up to an additional 20 horizontal oil wells
in the Viking formation in the Kindersley area of Saskatchewan in
2011. Now that the 100% Allstar owned production facility is fully
operational, all new production can be effectively tied in to fully
realize maximum field netbacks. The company is currently benefiting
from field netbacks of approximately $50/BOE from the Viking field at
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. In particular but without limitation, this press release
includes references to discovered and undiscovered oil and natural gas
resources and Allstar's future drill program. There is no certainty
that any portion of the resources will be discovered. If discovered,
there is no certainty that it will be commercially viable to produce
any portion of the resource. There is no certainty the drill program
will be fully or partially completed. 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. 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 circumstances.
Where amounts are expressed on a barrel of oil equivalent ("boe") basis,
natural gas has been converted at a ratio of six thousand cubic feet to
one boe. This ratio is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead. Boe's may be misleading, particularly if
used in isolation. References to natural gas liquids ("liquids")
include condensate, propane, butane and ethane and one barrel of
liquids is considered to be equivalent to one boe.
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 email@example.com.