Source CANADA NEWSWIRE
Time 10:02:28 AM
Company Northern Sun Exploration Company Inc.
Title Northern Sun exploration update
CDNX Symbol: NSE
" BC-Northrn-Sun-expo-updt 04-02 0800
News release via Canada NewsWire, Vancouver 604-669-7764 -ME-
Attention Business Editors:
^Northern Sun exploration update@
CALGARY, April 2 /CNW/ - NORTHERN SUN EXPLORATION COMPANY INC. (the
"Company") is pleased to provide an update to its exploration and capital
expenditure program for Alberta and Saskatchewan.
The Company has completed the initial testing of the eight exploration
wells from its December 2007 drilling program. After a comprehensive
period, the Company is pleased to report that six of the eight
test wells look to be economic, and once all the wells have been tied in,
Exploration program will have added 102 boed. Highlights by area are as
The Company's 50% working interest 1-23-87-6-W6, 2250 meter multi-zone
test well is producing oil and liquids from the Gething zone, as the
zones proved to be uneconomic. The well is being carefully managed to
a gas and oil / liquids production rate and minimize the water cut. The
is currently producing 10 boed and has been equipped to inject water for
disposal in the deeper zones. The water disposal into the deeper zones
commence when the operator has received regulatory approval which should
granted before the end of June 2008.
The Company drilled 2 multi-zone gas wells and 1 oil well at Grouard. The
completion and testing of the wells resulted in two gas wells and an oil
The oil well is currently producing 19 degree API oil at a rate of 6-10
boe/day. The 10-3 gas well remains to be tested for its gas potential
the initial zone tested has been inconclusive in terms of stabilized
the second well at 1-15 has been tested at a rate of 0.105 mmcf/day net
boed) and will be tied-in together with the company's other existing
gas wells when the Company's planned gathering project proceeds. The
would see the currently stranded gas, and all new volumes become tied-in
the local gas Co-op so the wells can produce near their full capacity.
Company is currently negotiating a joint venture that will enable the
gathering project to proceed. Upon completion of the project, the Company
expects to add approximately 0.90 mmcf/d (150 boed) to its existing
in the area.
The Company drilled two exploration wells and completion results indicate
the 14-13 well will be a gas well as it has been tested and the Company
currently obtaining approvals to tie-in to a nearby third party facility
gas production. Upon receipt of approvals the well is expected to produce
rate 0.138 mmcf/day (23 boed) net to the Company. Production is expected
begin near the end of June, 2008 after spring break up. The second well
7-26 has been tested and the initial zone has not been economic,
company will re-perforate the well in a shallower gas zone when weather
ground conditions permit. The Company paid 100% of all costs to earn a
working interest in the wells.
The Company drilled and completed the multi-zone gas test well. The well
has been tied-in to a nearby third party operator and is producing at a
of 0.127 mmcf/day (21 boed) net to the Company. The production rate
increase marginally as the well stabilizes. The Company paid 55% of all
associated with bringing the well into production to earn a 45% working
The Company 's 100% working interest multi-zone gas test well on its
property in the Supreme / Arena area of southwest Saskatchewan is
be tied-into to a nearby third party facility by the end of the June,
The well has been tested and is expected to produce at a rate of
0.150 MMscf/d (25 boed).
The Company expects to increase production upon reaching an agreement
with a joint venture partner with respect to the gathering project at
The project will add approximately 160 boed of which the Company expects
share up to 45% with it's joint venture partner. The Company's current
production is approximately 100 boe/day and is expected to be at 145 boed
commencement of production of the wells at Supreme and Thorhild.
Northern Sun is an Alberta-based exploration and production company with
operations in Alberta, Saskatchewan and the North West Territories.
ON BEHALF OF THE BOARD OF DIRECTORS OF
NORTHERN SUN EXPLORATION COMPANY INC.
President & CEO
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: please contact the Company toll-free at (866)
827-2722, via email at info(at)northernsunex.com, or visit the Company
CO: Northern Sun Exploration Company Inc.