Northstar Announces Foothills Results.

CALGARY, Alberta--(BUSINESS WIRE)--Nov. 5, 1997--Northstar Energy Corp. (TSE:NEN)(Alberta Stock Exchange:NEN) today announced that it has completed the drilling of a horizontal gas well in the Coleman field in the foothills region of southwestern Alberta.

The new well was sidetracked from an existing well in the field which had been producing approximately 1.5 million cubic feet per day (mmcf/d). The well has been logged and tested and initial results indicate that the well may be capable of producing in the range of 10-15 mmcf/d of natural gas.

In commenting on the Coleman well, John Hagg, chief executive officer, said, "we are delighted with the results of the Coleman horizontal and will evaluate the use of the sidetracking operation for a second well in the Coleman field." Northstar owns both the Coleman plant and the related infrastructure in the area. Production from the horizontal well at Coleman has been tied-in to the existing production facilities.

Northstar also announced that it was successful in acquiring an additional 56 percent working interest in the Coleman gas field through four separate transactions. The acquisitions increase Northstar's total working interest to approximately 90 percent.

John Hagg stated that, "the acquisition of the additional working interests in this important gas field is a sound strategic move for the company and reflects Northstar's fundamental business philosophy of owning high working interests in its core areas of operation."

With regard to Northstar's other activities in the area, drilling is continuing on the company's exploration well on the Blairmore prospect, in which Northstar has a 50 percent interest. The well is currently drilling at approximately 14,000 feet and is expected to reach its target depth soon. Results are expected in early December.

At the Racehorse Creek prospect, Northstar recently spudded a new exploratory well. Northstar has a 50 percent working interest in the well which has a projected target depth of approximately 15,000 feet. In commenting on the Racehorse Creek well, Hagg noted that, "the initial well in the Racehorse Creek prospect completed by Morrison in early 1997 encountered a potentially large gas reservoir, however, upon completion, it was clear that the well was drilled in a section with insufficient porosity for an economic production rate.

"The new well at Racehorse Creek is being drilled approximately 2,500 feet to the east of the initial well where we anticipate encountering the optimal conditions to allow the commercial development of this potentially significant natural gas pool."

The drilling of deep natural gas wells in the foothills area customarily takes from 120 to 150 days to reach target depth and, accordingly, results from the Racehorse Creek well are expected in the second quarter of 1998.

A well planned for the Burmis prospect, operated by Rigel Energy Corporation, has recently spud. Northstar has a one-third interest in the Burmis well which is licensed to a depth of 14,900 feet. Results from the Burmis well also are expected in the second quarter of 1998.

Northstar recently received a license to drill a well on its Highrock prospect in the southeastern British Columbia foothills. The well is located eight miles north of the Crowsnest Pass and 15 miles west of the Racehorse Creek location. John Hagg noted that, "Northstar and its partners have completed extensive 2-D and 3-D seismic programs in the area that have confirmed the presence of a significant geological anomaly."

Hagg went on to say that, "the Highrock anomaly is the largest anomaly encountered by Northstar in the area with a potential reservoir size of one trillion cubic feet of natural gas." The Highrock exploration well is expected to spud prior to year end and has a target depth of over 15,000 feet.

Northstar Energy Corporation is a Canadian company engaged in petroleum and natural gas exploration and production. The company's common shares are listed on the Toronto, Montreal and Alberta stock exchanges under the trading symbol NEN.

CONTACT: Northstar Energy Corporation

John A. Hagg/John Richels/Gretchen Thompson, 403/213-8000