CALGARY, ALBERTA–(Marketwired – Oct. 28, 2014) – High North Resources Ltd. (TSX VENTURE:HN) (the “Company” or “High North“) is pleased to announce that it has commenced drilling its sixth Montney horizontal oil well, located at 8-9-76-21W5M, which is part of its 100% interest in 20.25 contiguous sections of land in the Girouxville-McLean Creek area. This well is located on the same geological structure as the Company’s most successful Montney oil producers in section 2-76-21W5M and west of its five existing oil producers drilled to-date on this contiguous land. The Company expects the drilling of this well to extend the Montney oil pool boundary and increase the Company’s inventory of horizontal drills required to maximize efficient recovery. As previously announced, the Company anticipates drilling a minimum of four Montney horizontal oil wells per section.
The Company commenced delivering clean oil during September, 2014, in advance of its previously announced timeline, as a result of the installation of a multi-well battery located at the 09-03-76-21W5M pad. Emulsion containing oil from 09-26-75-21W5M and 08-21-76-21W5M is being delivered to the 9-3 battery resulting in increased netbacks to the Company (through a reduction in emulsion treatment and water disposal costs).
The Company anticipates receiving, in the near future, an updated draft reserve report from its third-party evaluator, GLJ Petroleum Consultants. The Company’s previous reserve report dated April 7, 2014, and effective March 31, 2014, reflected reserves pertaining to the Company’s first three wells.
Colin Soares, the Company’s President and Chief Executive stated: “We are very pleased with the 100 percent rate of success on the five wells drilled to date and will continue to employ the same disciplined, systematic approach of evaluating core prior to drilling the horizontal leg with the objective of generating cash flow within a short period of commencing production.”
[expand title=”Advisories & Contact”]Reader Advisory Regarding Forward-Looking Statements
This news release contains certain “forward-looking statements” or “forward-looking information” (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur or be achieved. This news release contains forward-looking statements, pertaining to, among other things, the following: the impact of the new well on the Company’s well inventory, the recovery and extension of the Montney oil pool boundary, the number of Montney horizontal wells to be drilled per section, the timing, method, cost and recovery from future drilling operations and the timing of receipt of an updated reserves report from GLJ Petroleum Consultants. Statements regarding future production, capital expenditures and development plans are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks, regulatory changes and certain other known and unknown risks detailed from time to time in High North’s public disclosure documents, copies of which are available on High North’s SEDAR profile at www.sedar.com.
Although High North believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance. High North’s actual results may differ materially from those expressed or implied in forward-looking statements and readers should not place undue importance or reliance on the forward-looking statements. Statements including forward-looking statements are made as of the date they are given and except as required by applicable securities laws, High North disclaims any intention or obligation to publically update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither the 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.
High North Resources Ltd.
Mr. Colin Soares
President and Chief Executive Officer
(403) 454-5565
csoares@highnorthresources.com
High North Resources Ltd.
Mr. Kyle Stevenson
Investor Relations and Director
(604) 687-1779
kstevenson@highnorthresources.com
www.highnorthresources.com
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