WINNIPEG, Feb. 1 /CNW/ - Donald Benson, Chairman and Chief Executive
Officer of Nordic Oil and Gas Ltd. ("Nordic" or the "Company"), today
announced that the Company has acquired an 85% interest in a compressor
station in Joffre, Alberta, Canada, owned by Desoto Resources Limited
("Desoto"), a sister company of Nordic.
In conjunction with this, Desoto, which is the operator in the area, has
signed a contract with Atco Pipelines ("Atco"), to transport the Company's
gas. This will result in a significant reduction in the costs of the Company's
natural gas production in the region.
"Currently, we pay $0.70 per 1,000 cubic feet of gas transported via the
existing pipeline system," Mr. Benson stated. "With the signing of this deal
with Atco, we estimate that our costs will drop by 50%.
"In addition, this will also allow us to hire our own people to operate
our wells, which will further reduce our costs," he added. "In time, we
believe that we will be able to bring other producers into our system and turn
the compressor station into a net earner for us, as opposed to an expense."
As part of the Atco deal, Atco will also build a new metering station,
approximately 3 kilometres south of the Nordic property. The station will be
paid for jointly by Nordic and Desoto.
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.
The TSX Venture Exchange has not reviewed nor accepts responsibility for
the adequacy or accuracy of the contents of this News Release.
This news release contains certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical fact, that address events or developments that the
Corporation expects to occur, are forward looking-statements. Forward-looking
statements are statements that are not historical facts and are generally, but
not always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and similar
expressions, or that events or conditions "will", "would", "may", "could" or
"should" occur. Although the Corporation believes the expectations expressed
in such forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results may
differ materially from those in forward looking statements. Factors that could
cause the actual results to differ materially from those in forward-looking
statements include market prices, exploration and drilling success, continued
availability of capital and financing and general economic, market or business
conditions. Investors are cautioned that any such statements are not
guarantees of future performance and actual results or developments may differ
materially from those projected in the forward-looking statements. Forward
looking statements are based on the beliefs, estimates and opinions of the
Corporation's management on the date the statements are made. The Corporation
undertakes no obligation to update these forward-looking statements in the
event that management's beliefs, estimates or opinions, or other factors,
For further information:
For further information: Donald Benson, Chairman & CEO, Nordic Oil & Gas
Ltd., Tel: (204) 956-5042, Fax: (204) 897-7154, E-mail: email@example.com