Northern Sun latest update on drilling activity for both oil and gas.
Northern Sun exploration update
11:16 EST Thursday, December 06, 2007
TSX-V: NSE
CALGARY, Dec. 6 /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.
ALBERTA
Worsley
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.
Grouard
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.
Thorhild
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.
SASKATCHEWAN
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.
ON BEHALF OF THE BOARD OF DIRECTORS OF
NORTHERN SUN EXPLORATION COMPANY INC.
"Chris Cooper"
President & CEO
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