Nextraction Energy Corp.

Nextraction Energy Corp.

March 11, 2010 09:15 ET

Nextraction Commences First Proof of Concept Well in Appalachian Basin

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 11, 2010) - Nextraction Energy Corporation (TSX VENTURE:NE) (the "Company") announced that its wholly-owned subsidiary, Nextraction Energy (US) Inc. ("Nextraction"), through its operating partner, Vinland Energy Operating, LLC has commenced drilling the Mountain Minerals #5 well located near the Tennessee/Kentucky border.

The well is permitted to a depth of 762 meters (2500 feet) and will be drilled to test the unconventional Chattanooga (Devonian) Shale formation in this well-known oil and gas producing region of the Appalachian Basin. Several operators in the region, including CNX Gas Corporation (CXG) and Atlas Energy (ATLS), have recently had success targeting this formation. Drilling will also target several shallower conventional zones including the Big Lime, Knifely and Warsaw formations.

The commencement of the Mountain Minerals #5 well follows a nine month long extensive geologic, geophysical and technical study of the regional area, including the Nextraction/Vinland acreage. Nextraction initiated its initial study in the area by coring George Brown #3 well in summer 2009 (see news release dated October 2, 2009) to determine the shale's mechanical and petro physical make up. The location was selected based on identifying highly fractured sectors where the highly organic Chattanooga shale will be encountered. The new well is located in close proximity to existing pipeline and compressor infrastructure that will allow for immediate production and sales of initial gas flows.

"We are delighted to be starting our Proof of Concept wells in the Appalachian Basin," says Mark Dolar, President of Nextraction. "This well, and the three wells to follow (our "Proof of Concept" wells), will allow us to perfect the completion program necessary to extract the known reserves on our acreage. Our success in the Proof of Concept wells will give us the confirmation to move forward with developing up to 500 well locations in this play. By spending the time necessary to develop solid prospects to drill, we believe we have increased our opportunity to develop multiple pay zones, thereby maximizing the potential for revenue from each well drilled."

Nextraction and Vinland Energy Eastern, LLC, a private company from London, Kentucky, USA, have entered into a farm-out and joint venture agreement to explore over 70,130 acres in the Appalachian Basin, between and on trend with recent Chattanooga Shale producing areas located both northeast and south-southwest of the Nextraction/Vinland acreage.

About Nextraction Energy Corp.
Nextraction Energy Corp. is a Canadian junior oil and gas company engaged in the exploration and development of oil and gas resources in North America. Nextraction targets projects with known reserves that provide lower risk, high return development opportunities in both conventional and unconventional resource projects, where our technical expertise can be applied to enhance production. The Company is headquartered in Vancouver, BC, Canada, and is currently developing a tight-sands gas play on the Pinedale Anticline in the Green River Basin region of western Wyoming, and a large Chattanooga shale gas resource play in Eastern Kentucky and Tennessee.

On behalf of the Board of Nextraction Energy Corp.

Mark S. Dolar, President and CEO


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