Northern Sun exploration update

    TSX-V: NSE

"Company") is pleased to provide an update to its exploration and capital
expenditure program for Alberta and Saskatchewan.



    The Company's successful 50% working interest 1-23-87-6-W6 Leduc oil and
gas test well drilled in August of this year was tied-in and began producing
gas and associated liquids from the upper Leduc zone in September. The Company
and its partner have since perforated and tested the lower distinct portion of
the Leduc zone encountering oil, gas and water. Given the differences in the
production characteristics between the two zones, the operator has since
isolated the two zones in a manner that permits both zones to be produced
simultaneously. Currently, the well is being held back by the operator in
order to maximize the amount of condensate and gas liquids the well can
produce with the conventional gas production. The well is currently producing
approximately 0.60 MMscf/d (90 barrels of oil per day equivalent) in addition
to approximately 25 barrels of condensate per day and gas liquids from the
upper Leduc zone. The company expects the well production to settle in at 75
to 100 boe per day net to the Company. The Company and operator will soon be
submitting a GPP (Good Production Practice) application to the Energy &
Utilities Board in order to obtain an approval to produce the well from both
distinct zones. The Company believes it can produce the bottom oil zone
independently from the top zone and add incremental production.
    Drilling at the Company's 50% working interest 2250 meter Leduc gas test
at 1-23-87-6-W6 has begun. The multi-zone prospect oil and gas well is
expected to reach total depth within the next 8 days. Upon success, the well
will be tied-in 600 meters to the existing pipeline meter station site, and
gas will be directed to nearby third party facility for gas sales.


    The Company has drilled 2 of its multi-zone gas wells thus far at Grouard
and is scheduled to spud its oil well within the next day. The logs for the
multi-zone gas wells are currently being reviewed and the wells will be tested
along with the oil well upon the completion of drilling. Upon a successful
test, the gas wells will 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 any new volumes become tied-in to the local gas co-op so the
wells can produce near their full capacity. If the Company's 100% working
interest oil well produces at an economic rate, production will be trucked to
a terminal approximately 25 miles away immediately.


    The Company will be drilling 2-3 exploration wells before year end to
test the prospect. The Company will pay 100% of all costs to earn a 65%
working interest. Information with respect to these wells will be released
when the play is properly evaluated and advanced.

    Figure Lake

    The Company will participate in drilling a 700 meter multi-zone gas test
well within the next three weeks. The deal requires payment of 55% of all
costs associated with bringing the well into production to earn a 50% working
interest. A successful gas well will be tied-in into an existing pipeline
approximately 50 meters away.


    The Company has drilled its 100% working interest multi-zone gas test
well on its property in the Supreme/Arena area of southwest Saskatchewan. The
well was drilled to a depth of 1050 meters and a successful test has warranted
the well to be tied-in to a nearby third party facility. The well is expected
to produce at a rate of approximately 0.15 MMscf/d (25 boed).

    Northern Sun is an Alberta-based exploration and production company with
operations in Alberta, Saskatchewan and the North West Territories.


    "Chris Cooper"
    President & CEO

    This release includes certain statements that may be deemed
"Forward-looking statements". All statements in this release that address
future production, reserve potentials or exploration drilling, are
forward-looking statements. Investors are cautioned that any such statements
are not guarantees of future performance and that actual results or
developments may differ materially from those projected in the forward-looking
statements. 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: contact the Company toll-free at (866)
827-2722, via email at, or visit the Company website at

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890