Seismic Shoot to Set Final Drill Sites for California Gas Projects

Northern Explorations has been informed by and is in consultation with the operator of the California Gas Projects that a seismic shoot is in the final planning stage towards ultimately setting the first gas well drilling location.

Norex has paid $376,692.00 in full for the acquisition of a 50% working interest in two Central Valley, California gas projects. The payment covers prospect fees, seismic and land lease acquisition costs to the vendor through a Swiss financing group.

The target gas well is part of a two well drilling plan under the Company's 2009 development program. The operator met with several seismic companies at the recent NAPE Convention in Houston last week and will be informing the Company regarding timing of the shoot once the contract has been awarded. The upcoming seismic shoot is required to define the outer parameters of the gas fields. Once the parameters are fully identified, drill site locations will be selected to maximize the probability of success of the well.

The two projects are located near the city of Sacramento, California in proximity to prolific gas reservoirs that have produced over 400 BCF of gas to date. The first gas well targets existing seismic data that currently indicates a 50 foot thick pay zone at an 8,000 foot depth. A successful gas well in this environment could deliver initial production rates from 2,000 to 5,000 Mcf per day. Norex believes that the project, if proven to be commercially viable, may represent a venture with an in-situ value of greater than $50 million in contained gas to the Company's majority working interest.


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