Nextraction Energy Corp.
TSX VENTURE : NE

Nextraction Energy Corp.

March 15, 2011 16:55 ET

Nextraction Closes on Acquisition of Viking Oil Production and Plans Development Drilling

Provost Field, Alberta

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 15, 2011) - Nextraction Energy Corporation (TSX VENTURE:NE) ("Nextraction" or the "Company") is pleased to announce that it has closed the Provost-Viking Oil Joint Venture acquisition with Magnum Energy, Inc. ("Magnum") of 3.25 sections of land in the Provost Field of eastern Alberta (see News Release, February 3, 2011). The field currently produces 30 barrels of sweet light crude oil per day and the Company believes the property holds significant upside potential through the re-completion of existing wellbores and the drilling of new horizontal wells.

Mark S. Dolar, President and CEO of Nextraction, reports, "This acquisition is another Company landmark which highlights our strategy to find projects on known plays which we have identified to hold significant growth opportunities. We are adding a commercially productive oil property to our portfolio, which already includes commercial gas production and considerable gas reserves."

Dolar adds, "We believe, using our in-house expertise, that we have the opportunity to add 10-15 horizontal oil wells in this defined pool. The Viking 'A' sand is known for porosity values of approximately 20% and two vertical wells on the property have already produced over 240,000 barrels of oil each. Properly designed horizontal completions should greatly increase production volumes. We will progress quickly towards re-completing wells on the leasehold and the drilling of two horizontal wells this summer."

This acquisition follows the announcement of the Company closing a Non-Brokered Private Placement in the amount of $3,499,999 on March 10, 2011 (see News Release dated March 10, 2011). The Company is also in the process of closing its bought deal, Brokered Private Placement in the amount of $2,500,000 (see News Releases dated March 1, 2014 and March 4, 2011).

Deal terms of the Provost Acquisition

The terms of the Provost-Viking Oil Joint Venture provide for Nextraction and Magnum to acquire the property for $2.8 Million on a 50/50 basis. Under terms of the Joint Venture Agreement, Nextraction has loaned Magnum its share of the acquisition costs and will receive all production revenue until Magnum repays Nextraction for its share of the investment. Nextraction and Magnum will then participate in expenditures and revenue on a 50/50 basis.

Nextraction shall also pay 100% of the costs to drill and complete the first two horizontal wells, with revenue being shared on a 50/50 basis from first production. The preliminary estimated cost to drill and complete each well is $1.5 million.

Costs and revenues for all subsequent wells will be shared equally.

The Provost Field

The Provost Field is known for its prolific Viking formation, where a unitization study of the Viking pool in the Provost Field was performed by McDaniels Consultants in 1968 and submitted to the Energy Resources Conservation Board (ERCB). This study indicated that the pool contained over 80 million barrels of oil in place and to date approximately 3 million barrels of oil have been recovered from the field, primarily from vertical wells drilled over the past 20 years. Less than 4% of the oil in place has been produced. The Nextraction/Magnum acquisition accounts for approximately 15% of the lands covered in the Provost Viking 'A' pool identified in the McDaniels report.

On behalf of the Board of Nextraction Energy Corp.

Mark S. Dolar, President and CEO

About Nextraction Energy Corp.

Nextraction Energy Corp. is a Canadian junior oil and gas producing company engaged in the exploration and development of oil and gas resources in North America. Nextraction targets projects with known reserves and plays 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 has offices in Vancouver (B.C.), Calgary (Alberta), and Golden (Colorado). In addition to the Provost oil Field, the company is planning a 3-dimensional (3-D) seismic and drilling program for Bakken oil in the Williston Basin. Nextraction is currently producing and generating cash flow in the Pinedale Anticline in the Green River Basin region of western Wyoming and from its Chattanooga shale gas resource play in eastern Kentucky/Tennessee.

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. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.

Such forward-looking statements or information include, without limitation, statements or information about the Company's business strategy and goals, our future capital and other expenditures and requirements, reserves and resources estimates, our drilling plans, seismic activity, production levels and the sources of growth thereof, project development schedules and results, results of exploration activities and dates by which certain areas may be developed or may come on-stream, our future financing and capital activities, contingent liabilities and environmental matters. Often, but not always, forward-looking statements or information can 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. With respect to forward-looking statements and information contained herein, we have made numerous assumptions including, among other things, the accuracy of recovery rates and production in surrounding areas. Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, amongst others, general economic conditions, industry conditions, volatility of commodity prices, stock market volatility, imprecision of reserve estimates, environmental risks, the Company's ability to obtain sufficient capital from internal and external sources to fund its proposed drilling program, misjudgments in the course of preparing forward-looking statements or information and those risk factors identified in the Company's Management Information Circular dated September 11, 2008. Should one or more of these risks and uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements and information.

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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