True North Energy Corp.
True North Energy Announces Three Well Drilling Program Participation in Texas and Louisiana
Corporate news transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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True North Energy Announces Three Well Drilling Program Participation in
Texas and Louisiana
Houston, Texas, USA. Jun 22, 2006. True North Energy Corporation (Frankfurt
WKN: A0JLX7; OTC BB: TNEN), a junior oil and gas exploration company, is
pleased to announce that effective June 7, 2006 the company has entered
into a three well participation agreements with Bayou City Exploration
(‘Bayou City’). Bayou City is acting as an operator on all of the wells.
The program consists of drilling one well on the Windfall Prospect to test
the Hockley and Cole sands and a re-entry of an Arco McLean No. 1 Well on
the Frost National Bank Prospect, to test the Wilcox sands. Both prospects
are located in Live Oak County, Texas. Third project, the Zodiac II
Prospect, will be drilled to test the Siph D Formation in Jeff Davis and
Calcasieu Parishes in Louisiana.
Bayou City estimates potential productivity from the re-entry of the Arco
McLean No. 1 Well at 2 mmscfd(+) (250 mcfd(++) net to the company after
payout). The Wilcox trend sands in the area have documented productive
wells dating back to 1960. The play has been recently rejuvenated by
significant field discoveries along the trend with some wells reporting
initial rates of 7 MMCFD.
The re-entry operation commenced on the Frost National Bank Prospect on
June 8, 2006.
By participating in the Live Oak County Prospects, True North will earn a
16.67% working interest in the Prospects before payout and a 12.5% working
interest after payout. In the Zodiac II Prospect True North Energy will
earn a 25% working interest when the test well has reached the target
depth. True North Energy will pay 33.33% of well drilling costs and 25% of
all well completion costs. The company will also pay its proportionate
share of prospect costs including geological and geophysical costs, third
party prospect fees, land brokerage costs, lease bonus and all other costs
associated with the respective Prospects.
Under the respective agreements, True North Energy has an option, but not
the obligation, to participate in the drilling of any subsequent wells
within the Prospects area by paying its proportionate share of the costs.
True North Energy has an option to participate in a fourth prospect, a new
well to be drilled in Live Oak County, Texas, targeting the deep Wilcox
formation. At this time, the prospect is still under development and will
require additional seismic to define a drilling location. The company
anticipates making a decision on drilling this prospect within next twelve
months.
The opportunity to participate in this program represents True North
Energy’s continued efforts to add cash flow and proven reserves while at
the same time diversifying its portfolio risk profile.
Management’s Comments
John Folnovic, True North Energy Corporation President and CEO, said: ‘The
Wilcox Trend prospect is a very attractive, near term opportunity. If
successful, the project will deliver quick cash flow and proven reserves to
the company and contribute to the funding of the recently undertaken
evaluation of our core assets in Alaska. We are also very pleased to be
working with an experienced operator such as Bayou City.’
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 company’s core asset 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 petroleum land holdings. True North Energy Corporation trades on the
NASD OTC BB under the ticker symbol: TNEN.
John Folnovic, President and CEO
Bayou City Exploration, Inc. is an oil and gas exploration firm focused in
proven geologic trends in East Texas, the Gulf Coast of Texas and
Louisiana. Based in Houston, Texas, Bayou City leverages its management
team’s long experience and multidisciplinary expertise in applying advanced
3-D seismic analysis, 3-D processing algorithms, amplitude attribute and
imaging technologies to reduce the drilling risks by identifying the
presence of economic hydrocarbons. The Company’s database has more than
7,200 square miles of 3-D data, most of it covering Bayou City’s focus
area, as well as 13,000 miles of 2-D data. Bayou City Exploration Inc.
trades on the NASD OTC BB under the ticker symbol: BYCX.
(+) million standard cubic feet per day
(++) thousand standard cubic feet par day
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.
For further information please contact:
True North Energy Corp.
Anthony Zelen
V.P. Corporate Communications
Tel. +1 (888) 567 0888
Anthony@tnecorp.com
www.tnecorp.com
AXINO AG
Silberburgstrasse 112
D-70176 Stuttgart
Tel. +49 (711) 25 35 92-30
Fax +49 (711) 25 35 92-33
info@axino.de
www.axino.de
(c)DGAP 23.06.2006
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Language: English
Issuer: True North Energy Corp.
1200 Smith Street
77002 Houston, TX Deutschland
Phone: +1 832 295 9639
Fax: +1 832 553 7244
email: info@tnecorp.com
WWW: www.tnecorp.com
ISIN: US89784T1016
WKN: A0JLX7
indices:
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