WINNIPEG, Feb. 1 /CNW/ - Donald Benson, President of Nordic Oil and Gas
Ltd. ("the Company" or "Nordic") announced today that the Company intends to
undertake two new non-brokered private placement offerings - one for up to
5,882,235 units at a price of $0.425 per Unit for gross proceeds of $2,500,000
to various subscribers, and the other for up to 3,750,000 Units at a price of
$0.40 per Unit, for gross proceeds of $1,500,000.
Each Unit priced at $0.425 will consist of one Class A common share of
the Company issued as a "Flow-Through share" within the meaning of the Income
Tax Act (Canada) and one-half of one Class A common share purchase Warrant ("a
Warrant"). Each whole Warrant would entitle the holder thereof to purchase one
regular Class A common share of the Company at a price of $0.65 for a period
of two years from the date of issuance.
Each Unit priced at $0.40 will consist of one Class A common share of the
Company plus one-half of one Class A common share purchase Warrant. Each whole
Warrant would entitle the holder thereof to purchase one Class A common share
of the Company at a price of $0.60 per share for a period of two years from
the date of issuance.
The securities issued pursuant to the Offerings are subject to a
four-month holding period, from the date of closing.
Certain finders are expected to assist the Company by introducing
potential subscriber(s) to the new Offerings and, subject to compliance with
applicable legislation, will be entitled to receive fees equal to 6% of the
purchase price of the new Units sold pursuant to the new Offering as well as
warrants ("Additional Finder's Warrants") equal to 8% of the number of new
Units sold pursuant to the new Offering. Each new Finder's Warrant shall
entitle the holder thereof to purchase one regular Class A common share of the
Company at a price of $0.60 for a period of 24 months from the date of
The Company anticipates multiple closings in the coming weeks.
All terms of the new Offerings are subject to the approval of the TSX
Nordic Oil and Gas is set to embark on several new exploration and
development initiatives in 2008, including its drilling program in
Preeceville, SK, and the development of its lands in Lloydminster and the
Peace River Arch area of Alberta.
"It is our intention to use the money raised to fulfil our Capital
Expenditures program this year of $7 million," Mr. Benson said. "As we have
stated previously, we will commence drilling our first two wells in
Preeceville during the first quarter, and we also intend to commence a new
drilling program in Lloydminster and Joffre as soon as possible. These new
funds will allow us to move forward with these and other initiatives with
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: firstname.lastname@example.org