Northern Explorations Acquires Canadian Natural Gas Project, Names New CEO
Northern Explorations is currently operating its business under the trade name of Norex Energy which best reflects management's current strategic outlook and planning.
Norex (Northern) has targeted the natural gas sector in response to recent developments in the global economy. As the price of oil remains volatile, natural gas prices have stayed relatively stable and future opportunities and outlook appear to have considerable upside potential.
The Company believes that natural gas may prove to be the energy source of choice for the new U.S. administration's energy policies as identified and supported by renowned energy developer T. Boone Pickens who states in his well-publicized "Pickens Plan" that natural gas is a cheap new replacement for foreign oil.
Pickens's plan goes on to state that, "Natural gas is our country's second largest energy resource and a vital component of our energy supply. 98% of the natural gas used in the United States is from North America. But 70% of our oil is purchased from foreign nations. Natural gas is one of the cleanest, safest and most useful forms of energy -- residentially, commercially and industrially. The natural gas industry has existed in the United States for over 100 years and continues to grow. Domestic natural gas reserves are twice that of petroleum. And new discoveries of natural gas and ongoing development of renewable biogas are continually adding to existing reserves. While it is a cheap effective and versatile fuel, less than 1% of natural gas is currently used for transportation."
Moving ahead, Norex Energy has executed an L.O.I. (Letter of Intent) with Dominus Energy AG whereby the Company will acquire from Dominus, over a 60-day period certain assets in Alberta, Canada that include a 49% interest in a natural gas processing and compression facility, natural gas pipeline, additional infrastructure and certain lands associated to the infrastructure. The Alberta project has been reviewed in detail by the Company over a 60-day due diligence period and is found to have the potential to contain over 8 BCF of natural gas. The Company also has the option to obtain the remaining 51% interest from the owner over a 2 year period.
In related news, the Company is pleased to announce the appointment of Ralph Claussner P. Eng. to the position of President and Chief Executive Officer. Claussner graduated in 1984 from the U. of Calgary with B. Sc. Degree in Mechanical Engineering. Upon graduation he was employed for 15 years with a large independent Canadian producer in the areas of drilling; completions; operations and exploitation. During this period he was engaged in a wide spectrum of assignments in Western Canada and also the Southern USA, including drilling and completions design and implementation, wellsite supervision, formation damage assessment, asset exploitation and property team management and staff supervision.
Since 1998 he has continued to develop expertise in these roles with both public and private junior E&P companies, and has most recently been practicing as an independent engineering consultant during the past four years. Claussner is well versed in the areas of drilling and completions operations, reserve appraisals and economic evaluations. He is a member of APEGGA, SPE and CIM.