Northern Hemisphere Development Corp.

Northern Hemisphere Development Corp.

March 21, 2006 11:43 ET

Northern Hemisphere Development Corp.: Update on Bougie/Trutch Natural Gas Development Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 21, 2006) - Northern Hemisphere Development Corp. (the "Company") (TSX VENTURE:NHD) would like to update shareholders on its Bougie Trutch natural gas development program. In reference to the Company's release on January 26, 2006 regarding the C-36-A well, the Company had a meeting last week with the working interest owners in the Bougie Trutch play, and Focus Energy Trust (the "Operator") updated the participants with respect to the results of this winter's two well drilling program. The two wells have been completed and flow tested and the results are currently being evaluated. The partners are working together to develop the scope of the 2006/2007 winter drilling program, the details of which should be available in August.

The C-36-A well was originally classified as a "Development Well" as defined by the Petroleum and Natural Gas Act; Drilling and Production Regulation, under the enforcement of the British Columbia Oil and Gas Commission. As such, per the section 57 (4)(a) the Operator of well C-36-A is entitled to keep well data confidential up until "2 calendar months after the date of release of the drilling rig for (the) well or portion of (the) well classified as a development well." In light of the Operator's interpretation of the C-36-A well and prior to the release of the well data, the C-36-A well was reclassified by the British Columbia Oil & Gas Commission at the request of the Operator to an "Exploration Wildcat" well. The completion results of this "Exploration Wildcat" well are now classified as "tight" at the request of the Operator and therefore no information on the well will be released until Feb 13, 2007 unless approved by the Operator.

Further to the above, the Company would like to add some clarity to the reclassification of this well. An Operator is not obligated to advise the partners in a well when requesting a reclassification, as was the case in this instance. The British Columbia Oil & Gas Commission, Resource Conservation Branch can reclassify a well when requested by the Operator, subject to the Petroleum and Natural Gas Act; Drilling and Production Regulation section 14 (4), stating that "if a well has been drilled, the well or a portion of it, on application by the operator prior to the release of information pursuant to section 57 (4), may be reclassified as an exploratory wildcat and designated as a discovery well if, in the opinion of an authorized commission employee, the drilling of the well or the portion of the well resulted in the discovery of a new oil or gas pool." Section 57 (16) also stipulates that "if, as a result of the reclassification of a well or portion of a well as an exploratory wildcat under section 14 (5), and on approval of an application from the well operator, well reports and well data from each subsequent well in the pool must be held confidential by the Ministry and the Commission until the confidentiality period for the discovery well has expired or for the period specified under subsection (4), whichever results in the later date." In reference to "Discovery" wells, the British Columbia Oil and Gas Handbook best describes the classification as one in which an "application for discovery well designation may be made at any time, and is often made when a well is completed for production, (adding that) the application must include geological, geophysical and engineering data and an interpretive analysis, which clearly demonstrate that a new pool has been discovered."

The Company wishes to reiterate that the British Columbia Oil and Gas Commission has reviewed the well data and approved the reclassification of the C-36-A well through the process described herein.

With regards to the Company's Bougie Trutch land package, Northern Hemisphere Development Corp. has earned a total of twenty-six (26) square miles from the Slave Point formation to the basement, and twelve (12) square miles (two (2) earning blocks) from the surface to all zones above the Slave Point. The Company also has a working interest in all other sections within the 26 sections (26 square miles) land package. The Company also wishes to reinforce its commitment to the continued development of this 26 sections (26 square miles) land package.

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)