Sahara Energy Ltd.
TSX VENTURE : SAH

Sahara Energy Ltd.

November 10, 2006 16:44 ET

Sahara Energy Announces Gas Well at Gold Creek and Operational Update

CALGARY, ALBERTA--(CCNMatthews - Nov. 10, 2006) -

Not for distribution to U.S. newswire services or for dissemination in the United States of America

Sahara Energy Ltd. (TSX VENTURE:SAH) ("Sahara" or the "Company") is pleased to announce completion results on the Sahara Gold Creek 4-26-068-06W6M well. The well has been successfully perfed and stimulated in the Halfway Sand. An extended flow test produced natural gas at a rate in excess of 2 mmscf/d. The zone is currently shut-in for pressure buildup. An additional uphole gas zone has been perfed and stimulated - it is presently being evaluated with an extended flow test. Sahara has a 20 percent working interest ("WI") in this well.

Sahara (17.5% WI) participated in the drilling and completion of a Lower Mannville Sand well at Willisden Green, Alberta. The well is currently production testing.

Sahara also has participated in the drilling of 30 heavy oil wells, (average WI 40%), 7 wells in Lloydminster, Alberta, and 23 wells in the Buzzard/Lashburn areas of Saskatchewan, with a success rate of 96%. Currently 22 of these wells are now on production with the remaining 8 wells awaiting completion and surface equipment. Sahara anticipates drilling 4 additional wells (1.6 wells net) in Buzzard before year-end.

At Hayter, Alberta, Sahara will participate (50% WI) in the drilling of 3 McLaren Channel heavy oil wells. The wells are being surveyed and will be drilled in the next two months.

At Provost, Alberta, Sahara participated in the drilling and completion of 2 oil wells currently producing from the Lloyd/Cummings Sand (20% WI). The wells are currently being produced to establish stable rates.

Sahara has also participated in the drilling and completion of a Montney light oil/gas well (30% WI) at Tangent, Alberta and a Cardium light oil well at Pembina, Alberta (50% WI). Both wells were weather delayed, and are presently being equipped with surface facilities and should be on production prior to the end of November, 2006.

Sahara is currently operating a re-entry prospect for Mississippian oil in Southern Alberta (45% WI) and is participating in a Cadotte Sand prospect (15% WI) currently drilling at Simonnette, Alberta.

Sahara plans to participate with industry partners in several medium-shallow depth gas prospects in Western and Central Alberta. Prospects will be drilled at Sinclair (20% WI), Woodbend (22.5% WI), Kirkwall (30% WI) and 4 wells at Joffre (10% WI).

In southeast Saskatchewan, at Macoun, Sahara is participating for a 12.5% WI in a Midale Member light oil prospect that will be drilled horizontally.

All of the aforementioned prospects will be drilled prior to year-end.

Sahara has participated in the drilling of 54 wells (21.2 net) since December, 2005. Sahara is currently producing 220 BOEPD with 130 BOEPD behind pipe, and 1MMCF/Day of gas behind pipe. Sahara has secured an additional 62 locations (38% WI) to be drilled on its lands in the next 12 months.

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

READER ADVISORY

FORWARD-LOOKING STATEMENTS Certain information set forth in this document, including management's assessment of Mirage's future plans and operations, contain forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond these parties' control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Mirage's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Mirage will derive therefrom. Mirage disclaims any intention or obligation to update or review any forward-looking statements, whether as a result of new information, future events or otherwise.

Note: Boe means barrel of oil equivalent on the basis of 1 boe to 6,000 cubic feet of natural gas. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6,000 cubic feet of natural gas is based on an energy equivalency conversion primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.


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Contact Information

  • Sahara Energy Ltd.
    Peter J. Boswell
    Chairman
    (403) 232-1359
    Email: petebos@telusplanet.net
    or
    Sahara Energy Ltd.
    800, 510 - 5th Street S.W.
    Calgary, Alberta T2P 3S2