WINNIPEG, Sept. 27 /CNW/ - Donald Benson, Chairman and Chief Executive
Officer of Nordic Oil and Gas Ltd. ("Nordic" or the "Corporation"), is pleased
to announce the closing of the previously announced acquisition of
approximately 8,000 acres of Petroleum & Natural Gas leases in the
Lloydminster and Peace River Arch regions of Alberta. Nordic has acquired
these assets for cash considerations of $200,000, plus 1.5 million Class A
Common Shares of the Corporation at a price of $0.30 per share, for a total
acquisition price of $650,000.
"We are pleased that vendors of this caliber have taken our stock at a
price of $0.30 as part of this deal," Mr. Benson says. "It displays their
confidence in Nordic knowing that these new lands will vastly enhance the
Corporation's share value."
As a result of today's closing, the Corporation has acquired 1,080 acres
of land in the Lloydminster region of east-central Alberta and 7,040 acres in
the Peace River Arch region of northwestern Alberta. Overall, this acquisition
will triple the Corporation's land holdings and development drilling locations
in Alberta, and will provide Nordic with new core areas, which will be a
strategic fit for its current production and ongoing drilling activities at
At Lloydminster, the Corporation believes there exists significant
amounts of un-recovered heavy oil, which, says Mr. Benson is being produced at
a depth of 600 metres. "Initially, at least 10 new locations have been
identified for immediate drilling. In all, these lands provide over 100
potential drilling locations.
"We also believe that initial rates per well could be in the area of 30
BOpd and that approximately 43,000 BBLs of oil could be recovered from each
well on average," Mr. Benson adds.
The Peace River Arch property is comprised of 11 sections on the shallow
gas trend in northern Alberta in the Talbot Lake area. The land is adjacent to
production from the Blue Sky/Gething zone at a relatively shallow depth of 525
metres and is within 1-2 miles of potential tie-in. Sub-surface mapping shows
that potential exists on these lands for 7 initial locations, with an overall
total of 11 potential locations.
"The play in the Peace River Arch will initially be that of Blue Sky gas
at a depth of 525 metres," Mr. Benson states. "Both of these plays are in
actively producing areas, not unlike where we are located in Joffre, and they
now give us triple the number of development drilling locations in Alberta."
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 Company is listed on the TSX Venture Exchange
and trades under the symbol NOG.
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,
The TSX Venture Exchange has not reviewed nor accepts responsibility for
the adequacy or accuracy of the contents of this News Release.
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,