True North Energy Corp.
OTC Bulletin Board : TNEN

True North Energy Corp.

November 21, 2006 09:01 ET

True North Energy Announces the Second Well in the Louisiana Drilling Program and Provides an Update on the Drilling Programs

HOUSTON, TEXAS--(CCNMatthews - Nov. 21, 2006) - True North Energy Corporation (OTCBB:TNEN), an independent oil and gas exploration company, is pleased to announce that the drilling contract for the Zodiac II Prospect has been signed on November 16, 2006 and that the drilling rig has started to move on to the location of the Zodiac II Prospect (the "Findley 19-1 Well") located in Calcasieu Parish in Louisiana.

The Zodiac II Prospect is a second well resulting from the Company's June 7, 2006 participation agreements with Bayou City Exploration, Inc. ("Bayou City"). The agreements call for drilling of three wells, including the Jaboncillo Windfall Prospect ("the Windfall Prospect") and Frost National Bank Prospect (the "McLean #1 Well), each located in Live Oak County Texas and the Zodiac II Prospect (the "Findley 19-1 Well") located in Calcasieu Parish in Louisiana.

True North Energy will earn a 25% working interest in the Findley 19-1 test well. True North will pay 33.33% of well costs to the casing point and 25% of all completion costs for the Findley 19-1 test well.

The estimated drilling and completion costs for the Findley 19-1 test well are $1,509,000 and $793,200, respectively. The Findley 19-1 test well will be drilled to a measured depth of 7,972 feet in order to test the Amph B, A Series and Siph d sands.

Operational Update

McLean #1 Well - Live Oak County

The well was successfully re-entered and the well logs show approximately 500 feet of gross pay interval in the Wilcox formation. The well was fracture stimulated and extensively production tested. The well tested gas as high as 1.2 mmscfd and approximately 960 barrels per day of water.

The operator, Bayou City, has elected to temporarily suspend the Mclean #1 Well pending further evaluation. Bayou City and its partners plan to purchase 3-D seismic data covering the entire Frost National Bank Deep Prospect acreage. Mclean #1 Well is part of an overall position of 2,961 acres in Live Oak County owned by Bayou City and its partners. True North Energy has earned 12.5% working interest in the entire prospect acreage through its participation in the McLean #1 Well.

British Petroleum America Production Company ("BP") Tuscaloosa Well - Pointe Coupee Parish, Louisiana

The well is currently drilling at a measured depth of 20,116 feet towards permitted target measured depth of 21,250 feet. The drilling is progressing without any Environmental, Health or Safety incidents and on budget.

John Folnovic, True North Energy Corporation President and CEO, said: "These prospect are consistent with our strategy to increase geographic, play type and risk diversification of our North American portfolio in order to fund our exploratory efforts in Alaska. We have recently undertaken a more detailed technical evaluation of our Harriet Point Prospect in the Cook Inlet Alaska, which we hope to complete by year-end. As a result of our expanded activity, we will also be raising additional financing to fund the current projects and to increase our working capital."

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.


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