Northern Hemisphere Development Corp.

Northern Hemisphere Development Corp.

July 12, 2005 11:23 ET

Northern Hemisphere Development Corp.: Drilling Successful at the Bulwark Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 12, 2005) - The Board of Directors of Northern Hemisphere Development Corp. (TSX VENTURE:NHD)(the "Company") is pleased to announce that, further to News Release 05-16 dated April 13, 2005, the Leduc D-3 test well ("test well") has been successfully drilled and cased on the Bulwark Property, located in central Alberta.

The test well was drilled to a depth of 1,180 meters targeting Leduc, Nusku and potential uphole Cretaceous gas zones. Testing has begun in a Coal Bed Methane zone and Lloydminster Sand gas zone. Weather permitting, testing should be completed within 30 days. The test well spudded, June 21, 2005 with rig release on June 29, 2005. There have been several significant delays throughout the drilling and testing process due to severe weather conditions in the region.

The successful test well confirms the structural targets defined in the 3-D seismic program previously completed on the Bulwark Property, allowing the Company with its partners, to identify 6 additional well locations to be drilled over the next 4 months.

Pursuant to the agreement with Warburg Resources Inc., the company has earned a 45-per-cent interest in two sections before payout, a 20-per-cent interest after payout, subject to a Crown royalty and a 2-per-cent gross overriding royalty. The participation cost for such interest is 50-per-cent of the estimated costs to drill and case the test well, being $200,000 (net), but does not include costs to complete and equip the test well. The company also has a further right to earn a 47.5-per-cent interest in a further four sections before payout, a 22.5-per-cent interest after payout, subject to a Crown royalty and a 2-per-cent GOR by drilling two additional wells.

The Board of Directors of the company is pleased to report that this is the third oil and gas project that the company has participated in this year. The company is continuing to aggressively pursue other interests in British Columbia and Alberta in the petroleum sector with a focus on production.

On Behalf of the Board of Directors

"J. Frank Callaghan"

J. Frank Callaghan

President and CEO

This News Release contains forward-looking statements regarding the timing and content of upcoming programs. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Northern Hemisphere Development Corp.
    J. Frank Callaghan
    President and CEO
    604-669-6463 or Toll Free: 1-800-663-9688
    604-669-3041 (FAX)