Northern Sun Strikes Gas at Grouard Prospect in Alberta

Northern Sun Exploration updates its exploration and capital expenditure program on the Company's Grouard property in Alberta as well as its Battle Creek, Fort Pitt and Senlac properties in Saskatchewan.


At the Company's Grouard property its 100% working interest exploration test well drilled to a depth of 850 meters encountered gas in various zones. The well was successfully completed and flow-tested and results indicate that the well should produce at a rate of 0.5 million cubic feet per day (84 barrels of oil equivalent per day). A pipeline tie-in to a third party facility is currently being surveyed and regulatory approvals should be in place for gas sales by the end of November. Testing on the second well in which the Company holds an 87.5% working interest is still pending final results.

The two successful wells drilled earlier in the year at Grouard in which the Company holds a 100% and 67.5% working interest respectively will also be tied-in in conjunction with the new successful well and both wells combined are expected to add an additional 0.55 million cubic feet per day (90 barrels of oil equivalent per day).

The Company's exploration gas test well at its Bittern lake property in central Alberta encountered gas in 2 separate zones but after production testing the well was deemed to be uneconomic and will be abandoned.


At the Company's Battle Creek property, six vertical gas development wells were drilled, cased and equipped, and all six wells have been tied-in to the on-site production facility. Two of the six wells have been brought into production and the remaining four wells are scheduled to be brought into production by the end of November. Production rates on these wells will be released when the wells have stabilized. The Company drilled two horizontal development wells in the existing producing Madison formation encountering oil in the Madison zone of the horizontal section of the wells. Although the wells encountered fractures in the producing formation and were equipped and tested for production, the wells have been determined to be uneconomic due to the high water cut as a result of the fractures encountered. The wells will be abandoned before year end.

The Company has drilled, cased and completed its 100% working interest gas test well at Fort Pitt, Saskatchewan. The well is scheduled to be production tested and upon a successful economic test the Company will install pipeline and production equipment and tie-in the well to a nearby third party operated facility.

The Company has obtained a rig for its proposed exploration oil and gas test well at Senlac. The well is scheduled to be drilled late next week to a depth of 800 meters targeting Mannville oil and gas prospects. The well will be immediately tied-in to a nearby third party facility for gas sales provided the well proves to be economic.