True North Energy Corporation Announces Operational Update
April 07 2008 - 11:24AM
Marketwired
HOUSTON, TEXAS , an independent oil and gas exploration company,
is pleased to provide an operational update on its recent
activities.
New Financing
True North Energy Corporation is pleased to announce that the
Company and ICF Energy Corporation, its wholly-owned subsidiary,
have closed an additional $425,000 financing with Valens U.S. SPV
I, LLC and Valens Offshore SPV II, Corp. The Company will utilize
the additional funds for working capital and to evaluate production
improvement of its Brazoria County, Texas, properties. The
financing closed on March 31, 2008.
Texas
On January 31, 2008, True North Energy Corporation completed its
first full quarter as a producer and operator, generating revenue
from producing properties in Brazoria County, Texas. The properties
consist of 1,150 acres and two wells that produce approximately 800
thousand cubic feet of gas and 10 barrels of oil per day, net to
the Company. Revenues generated during the last quarter totaled
$543,000.
Alaska and The Rockies
Drilling has commenced on the Kupcake Prospect in the Beaufort
Sea. The well started drilling on March 26, 2008 and is currently
drilling at 4,100 feet. It is anticipated that the well will reach
target depth by end of April. The Company is participating in the
well through an Acreage Contribution Agreement, which may convert
to up to a 2% working interest in a future production unit,
depending on the acreage size of the unit and the success of the
exploratory well. Savant Alaska LLC is the operator of the Kupcake
prospect. Other participants in the well, in addition to Savant and
True North Energy, include Bordeaux Energy Inc., ExxonMobil,
ConocoPhillips and BP PLC.
The exploratory well is situated 20km from the 13.6 billion
barrel Prudhoe Bay oil field and immediately adjacent to the 100
million barrel Liberty Field operated by BP but not yet in
production. The target depth is 11,000 feet and the well is
expected to cost a total of approximately $14 million to drill and
log. Due to the Company's participation through the acreage
contribution, there is no cost to True North Energy in the initial
exploratory well. Should the well be successful, True North Energy
will have an opportunity to participate in the development of the
production unit at its earned working interest or to monetize its
working interest.
The Company has completed technical review of its Cook Inlet
Harriet Point prospect, and is actively seeking industry partners
to drill an exploratory well on the acreage it holds. Independent
review of the prospect, carried out by Rose and Associates,
suggests a median value of 100 million barrels of oil as the
potential recoverable resource, based on the probabilistic analysis
of the prospect. The Company anticipates that the cost of the
exploratory well will approximate $5 million. True North currently
owns 100% of the Harriet Point prospect.
The Company also is in discussions with several industry
partners regarding a joint venture to develop the Company's 100%
owned, 17,000-acre property in northwest Colorado.
"We are very pleased with the progress we have made to date. In
addition to acquiring producing and revenue generating assets in
Texas, our participation in the Kupcake exploratory well will not
only generate value for our shareholders, but should also give us
more insights into the prospective nature of our leases in this
area. We also appreciate the continued confidence our investors
have shown in the management of the company," said John Folnovic,
True North Energy President and CEO.
Further Information
Shareholders and interested parties are encouraged to visit True
North Energy's website: www.tnecorp.com and download True North
Energy Corporation's Information Package. Please feel free to call
shareholder relations toll-free on 1-888-567-0888 to receive a
corporate information package. Alternatively, sign up at the
website to receive news on the company as it becomes available.
About True North Energy Corporation
True North Energy Corporation is a publicly traded, independent
oil and gas exploration company, with headquarters in Houston,
Texas. True North Energy Corporation is focused on development of
the company's core assets in Alaska. The company is strategically
located in the Cook Inlet and Beaufort Sea areas of Alaska and has
commenced technical evaluation of its 34,850 acres of land
holdings. True North Energy Corporation trades on the NASD OTC BB
under the ticker symbol: TNEN.
John Folnovic, President and CEO
Forward-Looking Statements
Statements in this news release that are not historical facts
are forward-looking statements that are subject to risks and
uncertainties. Words such as "expects", "intends", "plans", "may",
"could", "should", "anticipates", "likely", "believes" and words of
similar import also identify forward-looking statements.
Forward-looking statements are based on current facts and analyses
and other information that are based on forecasts of future
results, estimates of amounts not yet determined and assumptions of
management, including, but not limited to, the Company's belief
that True North Energy Corporation can identify and successfully
negotiate leases for oil and gas properties in Alaska, and that the
Company can participate in the exploration of those properties.
Actual results may differ materially from those currently
anticipated due to a number of factors beyond the reasonable
control of the Company. Additional information on risks and other
factors that may affect the business and financial results of the
Company can be found in filings of the Company with the U.S.
Securities and Exchange Commission.
Contacts: True North Energy Corp. Investor Relations
1-888-567-0888 Email: ir@tnecorp.com True North Energy Corp. John
Folnovic President and CEO 1-888-567-0888 Website:
www.tnecorp.com
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