CALGARY, ALBERTA–(Marketwired – Nov. 20, 2013) – Northern Spirit Resources Inc. (“Northern Spirit” or the “Company“) (TSX VENTURE:NS) is pleased to provide the following operational update.
Northern Spirit has 8 net sections (2,048 hectares) of land in the Klein area in East Central Alberta. The Company has executed a successful 2013 drilling program at Klein North and South, having successfully drilled four (2.66 net) wells targeting medium gravity Sparky oil. At Klein North, one net vertical well was drilled by the Company and commenced production at an initial rate of 30 bbl/d, proving up a new oil pool for the Company. The Company is planning a follow-up horizontal development program on its Klein North properties, with up to 10 follow-up horizontal locations expected to be prospective for oil production. The Company notes that horizontal wells immediately offsetting the Company’s Klein North acreage are showing initial production rates of up to 180 bbl/d. At Klein South, the Company drilled three (1.66 net) horizontal oil wells in 2013. Two of these wells were placed on production in August and September 2013 at a combined gross initial rate of 100 bbl/d (55 bbl/d net). The third well continues to recover load fluids and production test results for this well are expected in the near term. The Company believes there are at least 10 follow-up horizontal locations at Klein South which are prospective for oil production.
At the Company’s Cactus, Alberta area (100% working interest), the Company equipped a well during the third quarter of 2013 which well commenced production at 15 bbl/d. Based on the success of this well the Company plans to acquire a seismic survey over the property in order to support additional development drilling.
About Northern Spirit Resources Inc.
Northern Spirit Resources Inc. is a public oil and gas company active in the exploration and development of oil and natural gas in the Klein, Wildmere and Bowden areas of Alberta.
ADVISORY ON FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “continue”, “estimate”, “may”, “will”, “should”, “believe”, “plans”, “cautions” and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this press release contains statements concerning the Company’s future development plans on its lands in the Klein and Cactus areas and the timing to receive production test results from the third well at Klein South.
Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Northern Spirit which have been used to develop such statements and information but which may prove to be incorrect. Although Northern Spirit believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Northern Spirit can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. In particular, in addition to other factors and assumptions which may be identified herein, no assurances can be given respecting: whether the Company’s continued exploration and development activities on its lands in the Klein and Cactus areas will be successful or that additional material volumes of petroleum and natural gas reserves will be encountered, or if encountered can be produced on a commercial basis; the ultimate size and scope of any hydrocarbon bearing formations on the Company’s lands; that initial production volumes from wells at Klein and Cactus will be sustained; that commercial production will result from the third well at Klein South; that additional drilling and completion operations at Klein or Cactus will be successful such that further development activities in these areas is warranted; that Northern Spirit will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities will be consistent with past operations; the general stability of the economic and political environment in which Northern Spirit operates; drilling results; field production rates and decline rates; the general continuance of current industry conditions; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Northern Spirit to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Northern Spirit operates; and the ability of Northern Spirit to successfully market its oil and natural gas products.
Further, events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, including, without limitation: changes in commodity prices; changes in the demand for or supply of the Company’s products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Northern Spirit or by third party operators of Northern Spirit’s properties, increased debt levels or debt service requirements; inaccurate estimation of Northern Spirit’s oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Northern Spirit’s public disclosure documents. Additional information regarding some of these risk factors may be found under “Risk Factors” in the Company’s Management Discussion and Analysis prepared for the year ended December 31, 2012. The reader is cautioned not to place undue reliance on this forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and Northern Spirit undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Also in this press release, Northern Spirit has provided information with respect to certain production information for lands and wells located proximate to its Klein and Cactus properties, which is “analogous information” as defined applicable securities laws. This analogous information is derived from publicly available information sources which Northern Spirit believes are predominantly independent in nature. Northern Spirit believes that the provision of this analogous information is relevant to Northern Spirit’s activities, given its acreage position and operations in the areas in question, however, readers are cautioned that there is no certainty that any of the development on Northern Spirit’s properties will be successful to the extent in which operations on the lands in which the analogous historical production information is derived from were successful, or at all.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Kevin R. Baker Q.C.
President & Chief Executive Officer
Dir: (403) 476-7010
Northern Spirit Resources Inc.
John H. Cassels
Vice President Finance, Chief Financial Officer & Secretary
Dir: (403) 476-7008