True North Energy Corp.
OTC Bulletin Board : TNEN

True North Energy Corp.

December 06, 2006 10:44 ET

True North Energy Announces Update on the Alaska Projects

HOUSTON, TEXAS--(CCNMatthews - Dec. 6, 2006) - True North Energy Corporation (OTCBB:TNEN), an independent oil and gas exploration company, is pleased to provide an Operation Update on the following Alaska Projects: Beaufort Sea and Cook Inlet.

Beaufort Sea

On November 26, 2006, True North Energy entered into a Letter Agreement with Savant Alaska LLC. ("Savant") under which True North Energy and Savant will pool certain leasehold interests on a net acreage basis, and agree to jointly drill a test well within Savant Kupcake Prospect. A test well will be located in Section 29, T11N, R18E and is planned to be drilled to a depth of 11,000 feet in order to test the Kemik formation.

Working interests within the pooled area would be approximately 91.55% Savant and 8.45% True North Energy. Savant will be the operator of the pooled area. Savant is in the process of securing a drilling rig and permitting the well and preparing appropriate agreements. The drilling operation is scheduled to commence in the first quarter of 2007.

The Kupcake prospect is located adjacent to the British Petroleum ("BP") Liberty Field discovery, which has estimated recoverable reserves of 130 million barrels. Savant estimates P50 recoverable reserves for Kupcake prospect in excess of 200 million barrels. True North Energy has 10,000 leasehold acres adjacent to the Kupcake prospect and is currently in process of evaluating the acquisition of all available 3D seismic that covers approximately one third of True North Energy acreage.

Cook Inlet

True North Energy has engaged Rose and Associates to conduct an independent technical evaluation of the resource potential of True North Energy Harriet Point prospect. Rose and Associates is a leading consulting firm and specializes in providing unbiased characterization and probabilistic play and prospect evaluations of some of the world's most challenging plays and prospects. In addition to the potential resource estimate, Rose and Associates will reinterpret and re-map the prospect based on the Company's existing 33 miles of seismic data. True North currently has 25,000 leasehold acres in the Cook Inlet area, which it owns 100 percent.

True North Energy has also engaged services of Michael Baker Corporation - Energy Division, to provide the True North Energy with an estimated project timelines and turnkey drilling and associated services costs for a test well on the Harriet Point prospect.

True North Energy anticipates that work by Rose and Associates and Michael Baker Corporation will be completed early next year.

"We are extremely pleased to be able to participate in our first Alaska well during the first year of our company's operation and with an experienced industry operator like Savant. I believe that the experience gained by participating in drilling of the Kupcake well and the work undertaken by Rose and Associates and Michael Baker Corporation will allow us to significantly advance our understanding and development of our Harriet Point prospect," stated John Folnovic, President and CEO of True North Energy Corp.

Further Information

Shareholders and interested parties are encouraged to visit True North Energy's website: 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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