True North Energy Corp.
OTC Bulletin Board : TNEN

True North Energy Corp.

December 19, 2006 11:07 ET

True North Energy Expands Exploration Program With Strong Support From Major Shareholders

HOUSTON, TEXAS--(CCNMatthews - Dec. 19, 2006) - True North Energy Corporation (OTCBB:TNEN), an independent oil and gas exploration company, is pleased to provide an Operation Update on its recent activities.

BP America Production Company ("BP") test well, Jarreau, O. Heirs #1 Well, targeting Tuscaloosa Sands in the Pointe Coupee Parish, Louisiana, reached the target depth of 21,350 feet. The well was logged and evaluated on December 17, 2006. Although there were several Tuscaloosa Sands with an excess of thirty feet (30) of net pay, BP has deemed the well not to be commercially viable due to the uncertainty of the aerial extent of the potential zone and the high cost of completion and surface facilities.

"Obviously we were not pleased with the results of the first Tuscaloosa well but we remain committed to increasing shareholder value through our exploration efforts. These prospects represent a medium to high-risk part of our portfolio. We are also pleased to partner with BP on these prospects. BP has been a great partner and we are looking forward to working with them on a second Tuscaloosa project in early 2007", said John Folnovic, True North Energy President and CEO.

"We continue to receive strong support from our major shareholders. We are currently negotiating an agreement for additional equity financing which we intend to close very shortly", indicated Max Pozzoni, True North Energy CFO.

True North Energy has a non-binding letter of intent in place with BP to participate in a second Tuscaloosa prospect. BP is currently drafting a Participation Agreement and we anticipate that the agreement for the second Tuscaloosa prospect will be signed in January 2007 with the well spud date scheduled for February 2007.

"We are also very excited about commencing exploration activities in Alaska's North Slope during the first quarter of 2007" said John Folnovic, "The initial 11,000 ft test well, which we plan to drill in partnership with Savant Alaska LLC., represents a great opportunity to test the Kemic formation which Savant estimates may hold in excess of 200 million barrels of recoverable oil".

As of today, the Walker Louisiana Well (the "18-1 Well") located on the Zodiac II Prospect, Calcasieu Parish Louisiana has set the surface casing at 2500 feet and is in process of drilling ahead at 3800 feet towards total measured depth of 7,972 feet. The well is targeting four sands including Amph B sands, A series sands and Siph d sands.

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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