|By Marketwired .||
|July 17, 2014 01:19 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 07/17/14 -- Northern Spirit Resources Inc. ("Northern Spirit" or the "Company") (TSX VENTURE: NS) is pleased to provide the following operational update.
The primary focus of Northern Spirit's development drilling program in 2013 and 2014 has been at Provost in East Central Alberta, which includes the Klein and Cadogan areas. The Company owns 23,300 gross or 16,700 net acres (26 sections) in the area of which 7,600 net acres is undeveloped (12 sections).
In 2013 Northern Spirit drilled 4 gross (2.2 net) successful horizontal wells at Klein. During the first half of 2014 the Company drilled 4 gross (3.5 net) horizontal wells and drilled 1 gross (0.9 net) vertical well in the Klein area. Further, in June 2014 the Company recompleted 1 gross (1 net) vertical well at Cadogan. All of the 2014 newly drilled wells targeted Sparky medium gravity oil and all were drilled and cased to full planned depth.
At Klein South, a horizontal well (WI 55%) was drilled in March 2014. The well was completed after spring break up and is currently being equipped for production. The well is estimated to be on production in August 2014. A vertical well (WI 86%) was drilled in Klein South in order to further delineate a Sparky target. This vertical well is currently being completed and tested.
At Klein North, 3 horizontal wells (WI 100%) were drilled in June 2014 from a common surface pad. Completion activity is currently underway and with success all 3 wells are estimated to be tied in and on production in August 2014. The recompleted vertical well at Cadogan is estimated to be on production in early August 2014.
Total capital expenditures to date for the Company's 2014 development drilling program are estimated to be $4.4 million.
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 East Central, 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 timing for certain wells drilled on its Klein and Cadogan properties to be tied in and on production and the capital costs associated with such drilling.
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 Provost 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 additional drilling and completion operations at Provost will be successful such that further development activities in this area 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, 2013. 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.
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.
Northern Spirit Resources Inc.
850, 396 - 11th Avenue SW
Calgary, Alberta T2R 0C5
Fax: (403) 269-1715
Northern Spirit Resources Inc.
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