Sahara Energy Ltd.
TSX VENTURE : SAH

Sahara Energy Ltd.

February 23, 2007 09:00 ET

Sahara Energy Updates Drilling Program

CALGARY, ALBERTA--(CCNMatthews - Feb. 23, 2007) - Sahara Energy Ltd. ("Sahara" or the "Company") (TSX VENTURE:SAH) is pleased to announce the casing of a horizontal well at Macoun, South-East Saskatchewan.

Sahara is pleased to announce its horizontal well (net 25 per cent), Costa Sahara Macoun South HZ 4C5-11-4A4-11-4-9 W2M, has been cased in the Macoun area of Saskatchewan. A 400 meter horizontal leg has been drilled out into the Midale Vuggy formation. The well will be placed on production testing, with results being announced in late March, 2007, to confirm its commercial oil potential.

In the Simonette area of Alberta, Sahara participated for a 15% working interest in a well that is currently on production at a rate of 1 mmcf/d, limited by pipeline restrictions. The well is expected to produce up to 2 mmcf/d within 30 days when this pipeline restriction is resolved.

In the Gold Creek area of Alberta , Sahara participated for a 17% working interest in a well that was completed as a Halfway oil well. The well is waiting on construction of surface facilities before being placed on production which is expected to occur in March.

At the Sahara operated Gold Creek 4-26-68-6W6M Halfway gas well (working interest 20%), Sahara is currently waiting on regulatory approvals. Pipelining and surface facility construction is starting immediately, with the well expected to be on production mid- March of 2007.

Two gas wells in the Lashburn area of Saskatchewan have been production tested and tied-in. Both wells are expected to commence production shortly.

Sahara participated for a 20% working interest in an Ellerslie test in the Leduc-Woodbend area of central Alberta. The well has been drilled and abandoned.

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
    (403) 232-1359
    Email: pete@saharaenergy.ca
    or
    Sahara Energy Ltd.
    800, 510 - 5th Street S.W.
    Calgary, Alberta T2P 3S2