NMEX Provides Corporate Update

Rhea-AI Summary

Northern Minerals & Exploration Ltd. (NMEX) has provided an update on its West Lenapah Natural Gas Project, which began selling gas on September 1, 2020. Initial revenues are expected in November 2020, with production rates exceeding 400 mcfgpd. The project involves 40,000 acres and is projected to deliver reserves of 11.0 to 25.0 bcf of natural gas. Recently, natural gas prices rose significantly, enhancing cash flow potential. NMEX filed its audited financial statements on October 29, 2020, for FY ending July 31, 2020. The company remains optimistic about growth opportunities despite the recent passing of a director.

Positive

• West Lenapah Project commenced gas sales with initial revenues expected in November 2020.
• Current production rate exceeds 400 mcfgpd, with potential for increase.
• Natural gas prices rose from $1.50 to current $3.02 per MCF, boosting cash flow prospects.
• Projected reserves for the West Lenapah Project estimated between 11.0 bcf and 25.0 bcf of natural gas.

Negative

• The company recorded the passing of director Howard Siegel in August 2020.

SALT LAKE CITY, UT / ACCESSWIRE / November 4, 2020 / Northern Minerals & Exploration Ltd. (OTC PINK:NMEX) is pleased to provide the following corporate update on its current projects and operations.

West Lenapah Natural Gas Project:

The West Lenapah Project began selling gas through its Southern Star tap on September 1, 2020 and will see initial revenues beginning in November 2020. Current field production rate is over 400 mcfgpd, and is expected to increase as the start-up phase progresses. Additionally, the initial results from the commencement of our work-over program has delivered the expected results. Current operations are focused on continuation of the rework program, winterization of the field and maintenance of the gathering system to increase gas deliverability and sales.

The West Lenapah Project, located in Nowata County, Ok, is a joint venture between Calihoma Partners, LLC and EnergyVest Inc., to operate, produce and develop a natural gas asset covering approximately 40,000 acres of largely contiguous acreage and 1200 miles of associated gathering lines. Future operations include the startup of 45 wells, the marketing of offset lease gas, and the development of over 40 identified Mississippian and Coalbed Methane gas wells currently located within the West Lenapah Project.

NMEX owns 7% interest in Calihoma Partners, LLC. The West Lenapah Project is projected to deliver to the Joint Venture reserves estimated between 11.0 bcf and 25bfc of natural gas.

Natural Gas Prices:

During the past few months natural gas prices have increased from $1.50 to as high as $3.40 per MCF. The current price per MCF is $3.02. The dramatic increase is reported to be caused by the decline of production from the wells in the shale play of west Texas. Additionally the prediction of a hard winter for more demand is also have an effect on the price. It is thought with more employees working from home the use of natural gas will increase as the pandemic caused by COVID - 19 continues to plague our country.

The benefit of higher natural gas prices makes the Company's investment in the West Lenepah Project more beneficial to the Company's cash flow.

Financial Statements

On October 29, 2020 the Company filed it audited financial statements on SEC Form 10K for the fiscal year ended July 31, 2020. This filing can be viewed by going to the SEC website: www.sec.gov

The Company regrets to report that Howard Siegel, director of the Company since 2013, passed away in August 2020. The Company wants to recognize and thank Mr. Siegel for his service as an officer and director.

About NMEX:

Northern Minerals & Exploration ("NMEX") is an emerging publicly traded company focused on oil and gas exploration & production, gold & silver exploration in Nevada & real estate development projects in Mexico.

Management is very optimistic about the future of NMEX as it is evaluating many opportunities for growth and expansion of the Company.

Contact: Noel Schaefer
Phone: 801-885-9260
Email: cerronrs@msn.com

Forward Looking Statements: Statements which are not historical facts contained in this release are forward looking statements that involve risks and uncertainties, including but not limited to, the effect of economic conditions, the impact of competition, the results of financing efforts, changes in consumers' preferences and trends. The words "estimate," "possible," "seeking," and similar expressions identify forward-looking statements, which speak only to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, because of new information, future events, or otherwise. Future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward-looking statements. The information herein is subject to change without notice. Northern Minerals & Exploration Ltd. shall not be liable for technical or editorial errors or omissions contained herein.

SOURCE: Northern Minerals & Exploration Ltd.

View source version on accesswire.com:
https://www.accesswire.com/614521/NMEX-Provides-Corporate-Update

FAQ

What is the update on Northern Minerals & Exploration (NMEX) regarding the West Lenapah Natural Gas Project?

Northern Minerals & Exploration has started gas sales from the West Lenapah Project, expecting initial revenues in November 2020, with current production exceeding 400 mcfgpd.

How much natural gas does the West Lenapah Project hold?

The West Lenapah Project is estimated to have reserves between 11.0 bcf and 25.0 bcf of natural gas.

What recent changes have occurred in natural gas prices?

Natural gas prices have increased from $1.50 to $3.02 per MCF, influenced by reduced production and expected higher demand due to winter conditions.

When were Northern Minerals & Exploration's financial statements filed?

The company filed its audited financial statements on SEC Form 10K on October 29, 2020, for the fiscal year ended July 31, 2020.