Nexstar Energy Ltd.
TSX VENTURE : NXE.A
TSX VENTURE : NXE.B

Nexstar Energy Ltd.

October 24, 2006 09:00 ET

Nexstar Energy Cases First Exploratory Well in Bigoray, Re-Works Well in Pembina

CALGARY, ALBERTA--(CCNMatthews - Oct. 24, 2006) - Nexstar Energy Ltd. (TSX VENTURE:NXE.A) (TSX VENTURE:NXE.B) ("Nexstar Energy" or the "Company") is pleased to announce that field activity is underway in its core area of west central Alberta. In the Bigoray area, the Company has drilled and cased its first exploratory well and acquired additional undeveloped lands. In the Pembina area, Nexstar Energy re-worked a suspended well for natural gas production and has committed to participate in a 3-D seismic program to define new drilling targets offsetting this well.

Bigoray, Alberta

In October, 2006, Nexstar Energy drilled and cased an exploratory well at 3-22-53-8 W5M with completion operations expected to occur in November, 2006. The Company is the operator of this well and is participating for a 41% share of the costs. This well is the initial commitment under a farm-in and option agreement involving 9,600 gross acres in the area. In addition to the Company's farm-in and option lands in Bigoray, Nexstar Energy recently purchased 640 gross acres of undeveloped lands in the area from a third party. Subject to surface access, the Company expects to drill at least two additional locations in the Bigoray area this winter.

Pembina, Alberta

Nexstar Energy has successfully performed a workover to determine the production potential of the recently acquired Pembina 4-19-47-3W5M suspended natural gas well. The Company owns a 100% working interest in the well and associated pipeline. Initial test rates and pressures indicate the well is capable of producing up to one million cubic feet of natural gas per day with associated water. Nexstar Energy may produce this well at a lesser rate in accordance with good oilfield practice and anticipates the commencement of production from this well before year end. The Company has also committed to participate for up to a 40% working interest in a 3-D seismic program offsetting the Pembina well, with field operations expected to be completed in December, 2006.

Nexstar Energy is an emerging junior oil and gas company focused on drilling multi-zone crude oil and natural gas prospects in west central Alberta, complemented by strategic acquisitions. The Company completed a $12-million initial public offering and started trading on the TSX Venture Exchange on August 23, 2006.

ADVISORY:

Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environment risks, competition from other producers and ability to assess sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

9,200,000 Class A Shares

1,080,000 Class B Shares

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

Contact Information

  • Nexstar Energy Ltd.
    Peter A. Carwardine
    President and CEO
    (403) 263-6133 ext. 201
    (403) 263-3629 (FAX)
    Email: peterc@nexstar-energy.com
    or
    Nexstar Energy Ltd.
    Brian J. Spilchen
    VP Finance and CFO
    (403) 263-6133 ext. 202
    (403) 263-3629 (FAX)
    Email: brians@nexstar-energy.com
    or
    Nexstar Energy Ltd.
    603 - 7 Avenue SW, Suite 525
    Calgary, Alberta T2P 2T5
    Website: www.nexstar-energy.com