Sahara Energy Ltd.
TSX VENTURE : SAH
PINK SHEETS : SAHRF

Sahara Energy Ltd.

May 07, 2007 12:50 ET

Sahara Energy- 2006 Year End Reserves and Operational Update

CALGARY, ALBERTA--(CCNMatthews - May 7, 2007) - Sahara Energy Ltd. ("Sahara" or the "Company") (TSX VENTURE:SAH) (PINK SHEETS:SAHRF) is pleased to report that in accordance with National Instrument 51-101, DeGolyer and MacNaughton have completed the evaluation of the Company's reserves as of December 31st, 2006. Highlights of this report are as follows:

- Total Proved reserves of 544 M boe

- Total Proved plus probable reserves of 1,188 M boe

- Total proved, probable and possible reserves of 1,427 Mboe



SUMMARY OF RESERVES AS OF DECEMBER 31ST, 2006

Light Oil Heavy Oil Natural Gas NGL
Reserve Category (Mbbls) (Mbbls) (mmscf) (Mbbls)
----------------------------------------------------------------------------
Developed Producing 28 207 - -
Developed Non-Producing - 12 610 3
Undeveloped - 188 26 -
TOTAL PROVED 28 407 636 3
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Probable 13 597 197 1
TOTAL PROVED + PROBABLE 41 1004 833 4
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Possible - 239 - -
TOTAL PROVED+PROBABLE+POSSIBLE 41 1243 833 4
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Note:
The aforementioned reserve report does not include the recently drilled and
producing Halway oil well at Gold Creek.


Sahara has participated in the drilling of 47 wells in 2006 and an additional 6 wells to date in 2007. The Company is currently producing 320 BOEPD which consists of 200 bpd of heavy oil, 55 bpd light oil and 400 mcfd gas. Sahara has behind pipe production capability of 130 BOEPD consisting of 40 bpd oil and 600 mcfd gas for total production capability of 450 BOEPD. Sahara's well count is now at 62 wells with an average 38% working interest.

The Sahara operated Gold Creek 4-26-68-6W6M Halfway gas well (20% interest), has the pipeline and facility construction completed with the well producing in excess of 700 mcfd from the Halfway zone. With compression facilities currently being optimized the well is expected to produce at 1 mmcfd.

At Gold Creek, Alberta, battery construction was completed on a non-operated Halfway oil well (17% interest) that was brought on production in April at an average production rate of 85 bopd.

At Simonette, Alberta, Sahara participated in a gas well (15% interest) that is presently producing 1 mmcfd. The well is capable of producing over 3 mmcfd, but is limited by pipeline restrictions. The operator of the well is currently resolving the pipeline issue.

Sahara will drill 10 development wells after spring break-up (9 heavy oil wells and 1 gas well). This drilling program is anticipated to have a significant impact on production and cash flow.

Sahara has filed the form 51-101F1, 51-101F2 and 51-101F3 disclosure relating to National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities, concerning Sahara's oil and gas reserves as at December 31, 2006. A copy of this document may be obtained at www.sedar.com.

Sahara is a junior oil and gas company focused on the exploration and development of oil and gas in western Canada.

READER ADVISORY

Statements in this press release may contain forward-looking statements including expectations with respect to future events and the actions of third parties. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the underlying risks of the oil and gas industry (i.e. operational risks in development, exploration and production; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses, adequate available financing and health, safety and environmental factors), commodity price and exchange rate fluctuation and uncertainties.

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

Contact Information

  • Sahara Energy Ltd.
    Peter J. Boswell
    President and CEO
    (403) 232-1359
    Email: pete@saharaenergy.ca
    or
    Sahara Energy Ltd.
    Quentin C. Enns
    VP- Exploration
    (403) 232-1359
    Email: quentin@saharaenergy.ca
    or
    Sahara Energy Ltd.
    800, 510 - 5th Street S.W.
    Calgary, Alberta T2P 3S2