Nextraction Energy Corp.
TSX VENTURE : NE

Nextraction Energy Corp.

March 22, 2010 09:00 ET

Nextraction Energy Successfully Drills Appalachian Basin Well; Encounters Gas-Producing Zones

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 22, 2010) - Nextraction Energy Corporation (TSX VENTURE:NE) (the "Company") announced that its wholly-owned subsidiary, Nextraction Energy (US) Inc. ("Nextraction"), has successfully drilled, logged, and set production casing on the Mountain Minerals #5 vertical well as part of its initial evaluation and development of its ongoing unconventional shale gas program in the Appalachian Basin, near the Kentucky and Tennessee border.

The Mountain Minerals #5 well was 100% funded by Nextraction. The project is under the field direction of Nextraction's operating partner, Vinland Energy LLC, and monitored by Nextraction's VP of Operations, Dr. Paul B. Trost. The well reached total depth of 2,521 feet (768.4 meters) on March 17, 2010. Production casing was set to total depth in anticipation of completion activities. The Company invested approximately $170,000 (US) to drill and set production casing, which is within the projected budget for the project. The Company anticipates completion expenditures of approximately $120,000 to frac, complete and establish natural gas sales.

Gas shows, as defined by both electric log interpretation and visual observation, were evident in the secondary targets of the Big Lime, Knifely, Ft. Payne, and Waverly formations.

Nextraction's primary target, the Devonian-age Chattanooga Shale formation, was encountered from 2,323-2,408 ft. (708-734 meters) as expected. Nextraction is pleased to report that a naturally-occurring gas show, near the top of the Chattanooga shale, was observed.

Based on initial log review, the shale character of the Mountain Minerals #5 well is similar to the core data of the George Brown #3 well that was previously drilled and evaluated by TerraTek, Inc (a Schlumberger company), for shale gas properties. The George Brown #3 well was cored in June of 2009 with the sole purpose of evaluating the mechanical properties and reservoir quality of the Chattanooga shale. Third party consultants' review of the Chattanooga reservoir rock properties within the area of interest in Whitley County, KY and Campbell County, TN, coupled with analysis by Nextraction's internal geochemist and VP of Operations, Dr. Paul B. Trost, showed that the reservoir rock parameters and contained gas content appear favorable for shale gas development.

 Analytical results of the George Brown #3 core well indicate the parameters required for commercial production are present in the well. A summary of the core results is as follows:

SUMMARY OF CHATTANOOGA SHALE CORE DATA

George Brown #3 Well

Shale Zone Depths
(ft)
# of Core Samples TOC Range
(Pct)
Porosity Range
(Pct of Bulk
Volume)
Gas Saturation Porosity Range (Pct of PV) Permeability (Nanodarcies) Vitrinite Reflectance
(RO)
Total Gas Content
(scf/ton)
1960-2033 14 5.65%-12.91% 2.38%-3.13% 1.04%-2.93% 126-215 0.69-0.85 20.6-43

The George Brown #3 core is located approximately 12 miles northwest of the Mountain Minerals #5 well.

The Company plans to conduct a complete evaluation of the log of the Mountain Minerals #5 well and design a comprehensive, multi- stage frac program, not only for the main target zone of the Chattanooga Shale interval, but also for the additional gas bearing zones encountered in the secondary targets.

Fracing and completion of the well is anticipated to occur within the next 8 weeks. A gas pipeline is located approximately 500 ft (152 meters) from the wellhead, and initial flow rates will be produced directly into the gas sales pipeline.

"Within two months, we have successfully drilled the initial Proof of Concept wells on both our Appalachian Basin and Pinedale Anticline projects," says Mark Dolar, President of Nextraction. "We believe our accelerated progress towards production and generating revenues speaks highly of our technical team, and will add significant shareholder value moving forward."

In addition to the completion planning on the Mountain Minerals #5 well, Nextraction is currently planning a completion program for the recently drilled Noble 6-24 well on the Pinedale Anticline in Sublette County, Wyoming.

About Dr. Paul B. Trost

Dr. Paul B. Trost, Ph.D., geologist-geochemist, received a B.S. in Chemistry from the University of Notre Dame in 1964, and a Ph.D. in Geochemistry form the Colorado School of Mines in 1971. Dr. Trost has over 25 years of experience in the oil and gas industry, with activities ranging from development of exploration targets, operations for drilling and completion programs, decision making for completion of oil and gas wells, vapor emission control systems for production tanks, personal funding of oil and gas projects, and acting as a consultant to third parties for all phases of oil and gas programs. Dr. Trost currently serves as VP of Operations and Director of Nextraction Energy Corp.

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 70,000 acre 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

FORWARD LOOKING STATEMENTS DISCLAIMER

Certain statements in this document may contain "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. Such forward-looking statements or information 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. Often, but not always, forward-looking statements or information may be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulations Services Provider have reviewed this release and does not accept responsibility for the adequacy or accuracy of this release.

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