High North Resources Ltd HNTHF

RE:RE:RE:RE:High North starts production testing third Montney well

[OILANDGAS]

The natural gas needs to be conserved so they will have to pipeline the gas to Long Run's plant or connect to an offsetting pipeline. This test period is only in place to remove the N2 (nitrogen) from the well bore because the N2 can not be sent to the plant. Once they remove the N2 from the well then they will have to shut the well if they do not have a way to conserve the gas. The offset wells owned by Long Run produce approximately 250 Mcf/d which the board will not allow to be flared and so it will need to be conserved. The press release is positive but they need to build facilities to handle the gas. They will truck the oil and salt water once these facility are in place which is not cheap relative to pipelining the oil effluent (oil and salt water) to a oil battery. All this cost money that they do not have and so another large financing is needed.