Sahara Energy Ltd.
TSX VENTURE : SAH

Sahara Energy Ltd.

January 12, 2007 13:05 ET

Sahara Energy Announces Two Gas Well Discoveries and Drilling Plans

CALGARY, ALBERTA--(CCNMatthews - Jan. 12, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA.

Sahara Energy Ltd. ("Sahara" or the "Company") (TSX VENTURE:SAH) is pleased to announce results on two recently drilled deep gas wells.

In the Simonette area of Alberta, Sahara participated for a 15% working interest in a well that was drilled and completed in the Cadotte formation. The reservoir was flow tested and indicated significant gas deliverability with a stabilized gas flow rate of 2 mmscfd with only a 2% drawdown of the zones productive capability. The well is presently being tied-in and should be on production within the next 60 days.

The second well was drilled in the Gold Creek area of Alberta and cased as a potential Halfway gas well. This well is currently being completed, Sahara has a 17 percent working interest in this well. At the Sahara operated Gold Creek 4-26-68-6W6M Halfway gas well (Working interest 20%), Sahara has a third party gas contract in place and has surveyed a 1.6 km pipeline for the tie-in. The pipeline right of way is presently awaiting regulatory approvals with the well expected to be on production in March of 2007.

Sahara is participating for a 20% working interest in an Ellerslie gas test in the Leduc-Woodbend area of central Alberta. The location was identified on 3-D seismic and is expected to spud within the next ten days.

Sahara also announces that it will operate for a 50% working interest in the drilling of up to 10 heavy oil wells, in the Lloydminster area of Alberta. Sahara will also participate for a 33% working interest in the drilling of an additional ten development heavy oil wells in the Buzzard / Lashburn areas Saskatchewan.

Sahara is a junior oil and gas company focused on the exploration and development of oil and gas in western Canada.

19,368,083 Common Shares Issued

READER ADVISORY

Statements in this press release may contain forward-looking statements including expectations with respect to future events and the actions of third parties. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the underlying risks of the oil and gas industry (i.e. operational risks in development, exploration and production; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses, adequate available financing and health, safety and environmental factors), commodity price and exchange rate fluctuation and uncertainties.

Note: Boe means barrel of oil equivalent on the basis of 1 boe to 6,000 cubic feet of natural gas. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6,000 cubic feet of natural gas is based on an energy equivalency conversion primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sahara Energy Ltd.
    Peter J. Boswell
    President
    (403) 232-1359
    Email: pete@saharaenergy.ca
    or
    Sahara Energy Ltd.
    800, 510 - 5th Street S.W.
    Calgary, Alberta T2P 3S2