True North Energy Corp.
OTC Bulletin Board : TNEN

True North Energy Corp.

September 12, 2007 13:12 ET

True North Energy Announces Agreement for Texas Acquisition and Gas Production

HOUSTON, TEXAS--(Marketwire - Sept. 12, 2007) - True North Energy Corporation (OTCBB:TNEN), an independent oil and gas exploration company, is pleased to announce that it has entered into a Purchase and Sale Agreement with Prime Natural Resources Inc., ("Prime"), a Texas corporation, to acquire Prime's interests in the Devon Fee Gas Unit and the O'Leary Unit No. 1 in Brazoria County Texas.

On August 31, 2007 our newly formed, wholly owned subsidiary, ICF Energy Corporation ("ICF") entered into a Purchase and Sale Agreement with Prime whereby ICF agreed to acquire certain oil and gas properties and related assets of Prime (collectively the "Assets") located in Brazoria County, Texas for $3,500,000. The Assets include the Devon Fee Gas Unit and the O'Leary Unit No. 1 and cover an aggregate of approximately 1150 acres. The Assets include 2 producing wells with an estimated 2 BCF of recoverable gas reserves and three additional exploration prospects in the Old Ocean Unit in Brazoria County, Texas. The properties are currently producing approximately 1 million standard cubic feet per day of gas and 10 barrels of oil per day, net to the Asset owner. Net cash flow from the assets is approximately $200,000 per month after taxes, royalties and operating expenses. ICF Energy will be the operator of the Devon Fee #1 Well following the closing of the transaction.

"We are very pleased with the opportunity to acquire these assets. We look at this transaction as a first of several that will add proven producing assets, with low risk exploitation potential, to the foundation part of our portfolio. These assets will complement our exploratory efforts in Alaska and Colorado. We anticipate closing the transaction next week." said John Folnovic, True North Energy President and CEO.

Further Information

Shareholders and interested parties are encouraged to visit True North Energy's website: www.tnecorp.com and download True North Energy Corporation's Information Package. Please feel free to call shareholder relations toll-free on 1-888-567-0888 to receive a corporate information package. Alternatively, sign up at the website to receive news on the company as it becomes available.

About True North Energy Corporation

True North Energy Corporation is a publicly traded, independent oil and gas exploration company, with headquarters in Houston, Texas. True North Energy Corporation is focused on development of company's core asset in Alaska. The company is strategically located in the Cook Inlet and Beaufort Sea areas of Alaska and has commenced technical evaluation of its 34,850 acres of petroleum land holdings. True North Energy Corporation trades on the NASD OTC BB under the ticker symbol: TNEN.

John Folnovic, President and CEO

Forward-Looking Statements

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's belief that True North Energy Corporation can identify and successfully negotiate leases for oil and gas properties in Alaska, and that the Company can participate in the exploration of those properties. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission.

Contact Information