High North Resources Ltd.
TSX VENTURE : HN

High North Resources Ltd.

November 18, 2014 07:30 ET

High North Resources - Operations Update

CALGARY, ALBERTA--(Marketwired - Nov. 18, 2014) -

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

High North Resources Ltd. (TSX VENTURE:HN) (the "Company" or "High North") is pleased to provide an operational update regarding recent positive production and Alberta Energy Regulator (the "AER") approval of flaring on a project development basis.

High North announces that its restricted production has stabilized and averaged approximately 300 barrels of oil per day ("bbls/d"), or approximately 500 barrels of oil equivalent per day ("boe/d") from the five horizontal wells drilled to-date on its 100 percent owned twenty contiguous sections in the Girouxville-McLean property. The 500 boe/d included flared gas and associated natural gas liquids ("NGLs") and reflected a material restriction on oil production due to the temporary flaring restrictions imposed by the AER during the month.

The AER has recently granted approval to High North to flare the associated gas production on the twenty contiguous sections currently being developed until August 1, 2015, when the AER and High North expect gas conservation to commence through the Company's proposed gas plant.

Fluid depression tests conducted on the four wells currently on pump: 9-26-75-21W5M, 9-2-76-21W5M, 16-2-76-21W5M and 8-21-76-21W5M substantiate Management's previous statements of the capability to increase production in all wells and with the AER approval, the Company is moving to optimize production.

The Company is encouraged to announce initial drilling results for the vertical portion of the sixth Montney horizontal well, located at 8-9-76-21W5M. This is the Company's sixth well with 100% success rate. Management believes the initial drilling results in the 1-8-76-21W5M vertical portion indicate the presence of Montney oil similar to that indicated at the 9-3-76-21W5M vertical from which the three section 2-76-21W5M Montney oil horizontal producers were drilled. As stated in the Company's press release dated October 28, 2014, the Company expects the drilling of the sixth Montney well to extend to the Montney oil pool boundary and increase its inventory of horizontal drills required to maximize efficient recovery.

Colin Soares, the Company's President and Chief Executive Officer stated: "High North continues to improve operational efficiencies to reduce cost and enhance value to the shareholders. The AER approval will allow the Company to move forward with its development plan to substantiate a minimum of four horizontal Montney oil wells per section over these contiguous sections."

Legal Advisories

Additional information about the Company is available under High North's profile on SEDAR at www.sedar.com.

Certain natural gas volumes have been converted to barrels of oil equivalent (BOE) on the basis of one barrel to six thousand cubic feet. Any figure presented in BOEs may be misleading, particularly if used in isolation. The calculation of BOEs is based on a conversion ratio of six thousand cubic feet of natural gas to one barrel of oil based on an energy equivalency conversion primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of six to one, utilizing a BOE conversion ratio of 6 Mcf: 1 barrel may be misleading as an indication of value.

Reader Advisory Regarding Forward-Looking Statements

This news release contains certain "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements 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. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. This news release contains forward-looking statements, pertaining to, among other things, the following: commencement of gas conservation through the Company's proposed gas plant, oil production rates and recovery from drilling operations, estimated additional drilling locations, the Company's move to optimize production, the timing, method, cost and recovery from future drilling operations, infrastructure development and the timing and effects thereof, facilities construction and equipment installation and the costs, timing, location and effects thereof, approval of the Company's application by the AER and the effects of the foregoing on shareholder value, the impact of the sixth Montney well on the Company's well inventory and extension of the Montney oil pool boundary. Statements regarding future production, capital expenditures and development plans are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks, regulatory changes and certain other known and unknown risks detailed from time to time in High North's public disclosure documents, copies of which are available on High North's SEDAR profile at www.sedar.com.

Although High North believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance. High North's actual results may differ materially from those expressed or implied in forward-looking statements and readers should not place undue importance or reliance on the forward-looking statements. Statements including forward-looking statements are made as of the date they are given and except as required by applicable securities laws, High North disclaims any intention or obligation to publically update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the 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.

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