Synenco Energy Inc., managing partner of the Northern Lights Partnership (NLP), today released its first independent estimate of coal resources on NLP’s coal lease application area. The coal resource estimate is based on data from 652 exploration holes and the associated Technical Report, dated May 8, 2007, has been prepared by independent qualified persons with Norwest Corporation.

In kilotonnes
—————————————————————-
Resource Category Measured Indicated Inferred
—————————————————————-
NLP Coal resources - 62,950 78,658
—————————————————————-

Synenco, on behalf of the Northern Lights Partnership, holds five coal lease applications covering 60,160 hectares in northeastern Alberta. Part of the coal lease application area overlaps the Northern Lights oil sands leases, which is where the Indicated resource is found. The entire coal lease application area is found in Townships 97 through 99, Ranges 5 through 7, west of the fourth meridian. These coal lease applications grant Synenco first in line status to apply for the coal leases for the coal lease application area, but do not in and of themselves permit Synenco to develop the coal resource.

The Corporation anticipates conducting further technical and economic analysis to determine the existence and extent of any benefits from recovering this mineable coal resource.

Mineral resources are sub-divided in order of increasing geological confidence, into “Inferred”, “Indicated” and “Measured” categories, with “Inferred” having the lowest level of confidence of the three categories and “Measured” having the highest level of confidence. According to the Canadian Institute of Mining standards, “Indicated” mineral resource estimates are based on detailed and reliable exploration and testing information; but, do not qualify as “mineral reserves” until demonstrated to have economic viability. This classification shows a level of confidence sufficient to allow the application of technical and economic parameters to support mine planning and evaluation of a deposit’s economic viability.

Additional details from the Technical Report

The coal quality analyses included: proximate analyses, ultimate analyses, sulphur content and form, mineral analysis of ash, ash fusion temperatures, and specific gravity, and were determined from the coal core. The coal appears to be of Sub-bituminous C rank according to ASTM classification. The heat and ash content of the coal is generally similar to that of coal that is currently being mined for power generation in other parts of Alberta, but with higher sulphur content.

The coal seams’ thicknesses range up to 27.1 metres. Norwest is of the opinion that the spacing of coal quality data available for the seam is adequate for characterization of the in-place quality in this study, but this will have to be confirmed by additional sampling and testing for more detailed evaluations.

To facilitate the estimation of resources, Norwest used a computer-generated geological model, produced by Norwest’s proprietary software. The geologic data used by Norwest consisted of both electronic files and raw data files. The electronic files included interpretive maps of seam structure and overburden thickness, lithologic and coal intercept files, seam coal quality parameters and surface topography. Raw data consisted of geophysical logs and representative laboratory coal quality reports from 1970s exploration.

Seam thickness, correlation and structural positions were validated through inspection of original geophysical logs. Several data verification procedures were utilized in order to verify the integrity of the drill hole database.

The full Technical Report by Norwest is available on SEDAR and www.synenco.com. It was prepared by Geoff Jordan and Georgia Hoffman, both of whom are “Qualified Persons”, as defined in National Instrument 43-101. The Author has also reviewed and approved the technical data in this news release.

About Synenco Energy and Northern Lights

Synenco Energy is a Calgary-based oil sands company which, with a 60-percent interest, is the managing partner of the Northern Lights Partnership and operator of the Northern Lights oil sands project. Synenco Energy also holds a 100-percent interest in the McClelland oil sands lease adjacent to Northern Lights project lands.

The Northern Lights project consists of an oil sands mining and bitumen extraction project to be established about 100 kilometres northeast of Fort McMurray, Alberta, and a heavy oil upgrader proposed for Sturgeon County near Edmonton. Separate regulatory applications for each segment of the project were filed with the Alberta Energy and Utilities Board and Alberta Environment during 2006. The independent best estimate of Northern Lights bitumen, based on all drilling up to and including the 2005/2006 program, is 1.67 billion barrels of Discovered Resources. In addition, Synenco, on behalf of the NLP, holds five coal lease applications covering 60,160 hectares in northeastern Alberta.

SinoCanada Petroleum Corporation, an indirect wholly-owned subsidiary of China-based Sinopec, owns the remaining 40 percent of the Northern Lights Partnership and project.

Cautionary statement about forward-looking statements

This news release contains “forward-looking statements” relating to Synenco Energy and NLP which are expressly qualified by this cautionary note. Estimates of NLP’s bitumen “Discovered Resources” are made as of December 2006 and estimates of coal mineral resources are as of May 8, 2007. These estimates are forward-looking statements. (The term “Discovered Resources” is defined in the COGE Handbook and in CSA Staff Notice 51-321. The terms “inferred mineral resources” and “indicated mineral resources” are defined in the CIM Standards). Further classification of the oil sands resources into contingent resources or reserves and of the coal mineral resources into reserves requires the completion of a feasibility or pre-feasibility study. Resource estimates are inherently uncertain and are generally considered more uncertain than estimates of reserves. The estimated and actual resources recoverable will differ and may differ materially from the estimate of NLP’s in-place resources.

All statements suggesting future plans and outcomes are forward-looking statements. In particular, all statements suggesting the economic impact of utilization of the coal resources on the Northern Lights Project are forward-looking statements. Readers are strongly cautioned that forward-looking statements are inherently uncertain and based on a number of estimates and assumptions and subject to numerous known and unknown risks and uncertainties. Undue reliance must not be placed on them. Actual results will differ, and in some cases will differ materially. Factors which could cause actual results to differ materially from those expressed or implied include but are not limited to: changes in government policy with respect to the development of coal; the ability to obtain timely regulatory approval for development of the coal lease application area, if at all; the ability to negotiate arrangements with holders of other leases or other competing interests on the lands over which the coal lease applications exist; environmental and other legislation applicable to development of coal resources; and the outcome of further technical and economic analysis of the benefits of the coal resources, if any. Also refer to the Risk Factors in Synenco’s Annual Information Form dated March 9, 2007. With respect to coal resources, readers are advised that the contents of this news release constitute a summary only and readers are referred to the full technical report.

Forward-looking statements are made as at the date of this news release and are not guarantees of future performance. Synenco Energy expressly disclaims any obligation to update publicly or revise any of the forward-looking statements except as required by law.

For further information

Media: Kelli Stevens, Public Affairs Coordinator, Synenco Energy Inc., Telephone (403) 451-5240, kelli.stevens@synenco.com
Investment Community: Idar Eikrem, Executive Vice-President and Chief Financial Officer, Synenco Energy Inc., Telephone: (403) 451-4612, idar.eikrem@synenco.com

Source: Synenco Energy Inc.