Seeking ratification of freehold leases, plus $111 million in overall
damages, including $100 million in punitive damages
WINNIPEG, Nov. 22, 2011 /CNW/ - Lawyers representing Nordic Oil and Gas
Ltd. (the "Company" or "Nordic"), (TSXV: NOG), and its joint venture
partner, Desoto Resources Limited ("Desoto"), along with lawyers
representing Encana Corporation ("Encana") appeared in Court of Queen's
Bench of Alberta on Monday, November 21, 2011 and have agreed to file a
Standard Case Litigation Plan, thereby moving the matter between the
two parties to trial.
"Both parties agreed on a Litigation Plan and we will be making
application to the trial coordinator for an expedited trial date,"
stated Donald Benson, President and CEO of both Nordic and Desoto. "As
such, it is anticipated that the trial will take place in early 2012."
Nordic Management Ltd. ("Nordic Management"), a company controlled by
Mr. Benson and another officer of the Company, has entered into an
agreement with Nordic Oil and Gas Ltd. and Desoto Resources Limited
whereby Nordic Management will provide financial assistance to the two
companies with regard to the legal fees associated with this matter.
The setting of the trial date comes after it was announced last April
that the Alberta Court of Appeal ruled in favour of Nordic and Desoto
in regard to setting aside a Summary Judgment previously received by
Encana. The matter at hand relates to the validity of numerous freehold
leases in Joffre, Alberta, which were issued by Pan Canadian Petroleum
Limited, a predecessor to Encana.
"These valued lands consist of 2.5 sections, which have been proven for
the production of both Natural Gas and Coal Bed Methane ("CBM")," Mr.
Benson stated. "Current spacing allows for as many as 12 CBM wells and
12 Belly River Natural Gas wells to be drilled.
"Perhaps the sweetest highlight of these leases is the fact that they
are subject to only a 15% royalty," he added.
In addition to the ratification of the leases, Nordic and Desoto are
also seeking damages totaling $111 million, of which $100 million are
in the form of punitive damages.
Furthermore, the Nordic/Desoto lawyers will also be making an
application to the Court with respect to the Court of Appeal Bill of
Costs that have yet to be returned to Nordic and Desoto following the
April 1, 2011 judgment in their favour.
About Nordic Oil and Gas Ltd.
Nordic Oil and Gas Ltd. is a junior oil and gas company engaged in the
exploration and development of oil, natural gas and Coal Bed Methane in
Alberta and Saskatchewan. The Corporation is listed on the TSX Venture
Exchange and trades under the symbol NOG. Nordic was one of the "2008
TSX Venture 50" companies, a ranking of the top 10 public venture
capital companies in five industry sectors listed on the TSX Venture
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of the contents of
this News Release.
This press release contains forward-looking statements with respect to
Nordic Oil and Gas Ltd. properties, and matters concerning the
business, operations, strategy, and financial performance of Nordic.
These statements generally can be identified by use of forward-looking
words such as "may", "will", "expect", "estimate", "anticipate",
"intends", "believe" or "continue" or the negative thereof or similar
variations. Such forward-looking statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future
expectations, including that the estimates and projections regarding
the properties are realized. Forward-looking statements are based on a
number of assumptions which may prove to be incorrect. Unless otherwise
stated, all forward looking statements speak only as of the date of
this press release and Nordic does not undertake any obligation to
update such statements except as required by law.
SOURCE Nordic Oil
For further information:
Don Bain, Corporate Secretary.
Nordic Oil and Gas Ltd.
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