Sahara Energy Ltd.

Sahara Energy Ltd.

March 29, 2006 15:06 ET

Sahara Energy Updates Winter Drilling Program

CALGARY, ALBERTA--(CCNMatthews - March 29, 2006) - Sahara Energy Ltd. (TSX VENTURE:SAH) ("Sahara" or the "Company") is pleased to announce that since commencing operations in December, 2005, Sahara has drilled 17 wells with an average working interest of 35%. These wells resulted in 8 oil wells, 3 dual oil/gas wells, 5 gas wells and 1 standing cased well. Currently 7 oil wells and 1 gas well are on production (net 80 BOED to Sahara) with the remaining 10 wells (75 BOEPD behind pipe) at various stages of completion and tie in. Sahara has also secured an additional 48 drilling locations through farm-ins and land acquisitions. This will bring Sahara's gross number of wells participated in to 65 gross wells (26 net wells). The 48 new drilling locations are comprised of 37 heavy oil locations in Lloydminster, Alberta and Western Saskatchewan, 3 light oil locations in Central Alberta and 8 gas locations in Central and Eastern Alberta. Surface leases have been acquired on the majority of the lands and drilling of these locations will begin after spring break up. Sahara's average working interest in the 48 locations is 40%. Sahara will operate 12 of these locations and expects that the 48 new locations will be drilled by September 30, 2006.

Under a joint venture agreement with the Mosquito First Nation Band, Sahara has also selected 15 Sections of land which the Band has "frozen" under the TLE program. Sahara has 3 years to drill these lands which contain numerous geologically defined drilling locations in western Saskatchewan.

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

ADVISORY: Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environment risks, competition from other producers and ability to assess sufficient capital from internal and external source. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

10,766,000 Common Shares Issued and Outstanding

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

Contact Information

  • Sahara Energy Ltd.
    Peter Boswell
    President and CEO
    (403) 232-1359
    (403) 232-1307 (FAX)
    Sahara Energy Ltd.
    1440, 700 - 4th Avenue S.W.
    Calgary, Alberta T2P 3J4