SCOTTSDALE, AZ--(MARKET WIRE)--Jun 10, 2009 -- Northern Explorations Ltd. (OTC BB:NXPN.OB - News) ("Northern," "Norex" or the "Company") is pleased to announce that the Company has received a reserve estimate for in-situ gas reserves at the Ozona Gas Project, Crockett County, Texas.
The calculation relates to both the initial gas well and all future well locations which comprise a total of 20 well locations on the 9,000 plus acres. Third party reservoir engineers have calculated that a minimum of 10 BCF gas is in place under the leased acreage.
This equates to 0.5 BCF per well location. The first well was drilled, cased, completed and stimulated in the Wolfcamp Canyon Sandstone Formation and upon tie-in to the pipeline infrastructure has been producing gas since May of 2009 at daily rates of 200 MCF per day. The reservoir engineers conclude that each well location should contain a similar reservoir of gas.
As the gas is sold under a purchase agreement with Eagle Rock Energy and is currently priced at a bid-week production price of $4.04 per MCF, the Company is confident that the value of gas in place if entirely commercially viable could exceed $40 million at today's prices.
Norex President Mark Schaftlein states, "This information provides us with real impetus as we proceed in our strategic planning. Our acquisition selection process is currently well underway and this project is considered highly favorable for further exploitation. We are very pleased to find ourselves with such a fine collection of high quality projects at such an early stage. We aim to move quickly yet prudently in order to fully capitalize our position."
About the Ozona Gas Project:
The project encompasses approximately 9,000 acres and is a well documented and prolific location enjoying the presence of actively established companies such as Chesapeake, Devon, EOG, XTO, and Quicksilver Exploration. Norex is currently producing gas at Ozona. Norex has acquired a 63% Working Interest in the project located near Ozona in Crockett County, Texas. Under the terms of the underlying agreement with the vendors, Norex will receive a 47.5% Net Revenue Interest in all natural gas production from the project.
ABOUT NOREX ENERGY (NORTHERN EXPLORATIONS LTD.) (OTC BB:NXPN.OB - News)
Norex Energy (Northern Explorations Ltd.) is an energy exploration Company currently developing natural gas projects across North America. The Company has acquired a working interest in natural gas assets located in Texas as well as projects in California and Alberta, Canada. The projects contain documented gas reserves and associated plant, pipeline and infrastructure currently in place.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our properties and any anticipated future production. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with petroleum exploration and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the most recent fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
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