True North Energy Announces Beaufort Sea Project Update

HOUSTON, TEXAS , an independent oil and gas exploration company, is pleased to provide an update on its participation in a Beaufort Sea project.

Effective January 23, 2008 we entered into an Acreage Contribution Contract the ("Contract") with Savant Alaska LLC ("Savant") pursuant to which we have agreed to conditionally assign to Savant part of our leasehold interest that was to be the subject of the Pooling Agreement between True North Energy and Savant (the "Lease Acreage") in exchange for Savant's drilling a test well within the Kupcake Prospect and allowing us to potentially earn a working interest of up to 2% in the future production unit if the test well is successful. The November 6, 2007 Pooling Agreement between True North Energy and Savant was terminated and we are continuing to move forward under the terms and conditions of the Acreage Contribution Contract.

The entire cost, expense, risk of drilling, production testing, plugging and abandoning the test well will be borne by Savant and its partners. If oil and gas is discovered in commercial quantities, all the parties will enter into an Operating Agreement governing the rights and obligations of the parties to the Contract in all Lease Acreage which Savant will earn from us effective from the date on which the drilling rig is released from the test well.

Savant is the operator of the project and has entered into a drilling contract with Kuukpik Drilling LLC for Kuukpik Rig No. 5. They are currently in the process of building an ice road and ice island and mobilizing the drilling rig. The drilling operation is scheduled to commence in early March 2008. The test well will be located in Section 29, T11N, R18E and is planned to be drilled to a depth of 11,000 feet in order to test the Kemik formation.

More detailed information concerning the termination of the Pooling Agreement and the terms of the Acreage Contribution Contract is available in the True North Energy Corporation Registration Statement filed with the Securities and Exchange Commission on January 31, 2008.

The Kupcake prospect is located adjacent to the British Petroleum ("BP") Liberty Field, which has been estimated by BP to contain up to 130 million barrels recoverable reserves. True North Energy has 10,000 leasehold acres adjacent to the Kupcake prospect and is currently in the process of evaluating the acquisition of 3D seismic that covers approximately one third of the remaining True North Energy acreage.

"We are pleased to be able to continue to participate in this exciting project through this win-win arrangement. The Acreage Contribution Agreement provides us with access to the well data and a potential upside of the Kupcake prospect at no cost. This will allow us to focus our resources on our operated projects," stated John Folnovic, President and CEO of True North Energy Corp.

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 asset's 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

True North Energy (CE) (USOTC:TNEN)
Historical Stock Chart
From Dec 2024 to Jan 2025