SOURCE: Northumberland Resources Inc.

January 23, 2012 08:00 ET

Northumberland Resources Inc. Provides Corporate Update

LAS VEGAS, NV--(Marketwire - Jan 23, 2012) - Northumberland Resources, Inc. (OTCBB: NHUR) is pleased to announce the following annual corporate update about the company and its recent business activities.

Oil Lease Acquisitions

On March 31st, 2011 Northumberland was a successful bidder at the Evenson Auctioneers Inc. oil production auction in Wichita, Kansas. We acquired the Mason, Thompson, Keyes and Harrell "D" leases inclusive of all production and improvements. The leases were purchased at auction from REH Oil & Gas LLC. The leases consist of 280 acres located in the Sawyer field in Pratt County, Kansas and 120 acres located in the Wildcat and Sawyer fields.

On June 11, 2011, the Company purchased a 30 percent working interest on an 81.5 percent net revenue interest in a joint oil and gas well drill project in Cowley County, KS. The well was successful and designated a "New Discovery."

On July 7, 2011, the Company purchased a 20 percent working interest on a 69.5 percent net revenue interest in two proven and producing oil wells located in Cowley County, KS.

In the fall of 2011 we increased our oil lease holdings with the acquisition of an additional 1040 acres of productive oil and gas leases. Two leases located in Pratt County, KS were purchased at auction consisting of six wells with a 100% Working Interest of 82% Net Revenue Interest. These six wells leases are directly adjacent to our existing leases and will integrate the 6 fields and maximize efficiency and production. Included in the purchase is a gas compression station which will enhance flows from current operations.

In September 2011 we purchased a 30% interest in seven wells from Lasso Energy, LLC's 80% Net Revenue Interest in three leases in Barton and Stafford County, Kansas with seven active wells. There are four oil producing wells, two disposal wells and one injection well. The three leases contain 680 gross acres. The current gross oil production combined is 12.25 BOPD and the current net oil production is 10.19 BOPD. We have estimated the new projects to show a 20 to 30% annual return on investment.

The Company currently has 27 Oil, Gas and SWD wells, with interests in 2160 acres of prime leaseholds. On June 28th, 2011, we shipped our inaugural production from the Pratt Oil and Gas Project storage tanks to Parnon Gathering, Inc., the purchaser of our oil production on the Mason and Keyes leases. Gas sales from the Company's leases are averaging 45 Mcf daily.

Financing Activities

In 2011 the Company raised over $1.2 million dollars in cash from sales of its securities in private offerings. These funds have been used to expand operations and acquire additional oil leases.

Management

On January 15, 2011, Dr. Fortunato Villamagna was appointed as a director, President and Chief Executive Officer of the Company. Dr. Fortunato Villamagna has over 25 years of domestic and international experience in the mining services, specialty and bulk chemicals, capital equipment, bioenergy, aerospace and energetic materials businesses. Dr. Villamagna holds a PhD in Chemistry and MBA in Global Management from the (University), and has worked throughout North America, Europe, Australia and West Africa. Dr. Villamagna's extensive business experience includes serving as director and CEO of UTEC Inc., a 50 year old energetic material testing, development and manufacturing company and Department of Defense contractor; President of BioEnergy Systems, a technology company serving the biofuels industry; Vice President - Business Development for American Pacific Corporation (AMPAC), a publically listed company involved with energetic products used primarily in space flight, aerospace and defense systems and water treatment equipment; Vice President Technology, Americas and Europe for Orica Inc., an Australian-owned, publicly-listed global company, and global leader in mining products and services; Director of Bulk Delivered Products for Energetic Solutions, Inc., a part of UK-based ICI Explosive. Dr. Villamagna also serves as Secretary and CFO of Lucky Boy Silver Corp., a gold and silver exploration company.

On January 17, 2011 we appointed Peter Hewitt as director and to act as corporate secretary and CFO of our company. Mr. Hewitt has over 20 years experience working with blue chip companies such as TVR Sports Cars Ltd and Findel Plc.

About Northumberland Resources

Northumberland Resources is a highly focused, risk-averse oil and gas exploration company with a strategy of building a substantial portfolio of oil and gas assets in the onshore U.S. Northumberland Resources is a reporting company quoted on the OTCBB under the symbol NHUR. Additional data on the Company is available through its website and Yahoo Finance at http://finance.yahoo.com.

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our properties and any anticipated future production. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with petroleum exploration and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Peter Hewitt
    Director
    1-253-432-1233