WINNIPEG, May 26 /CNW/ - Further to its News Release of April 13, 2010, whereby Nordic Oil and Gas Ltd. ("the Company" or "Nordic") announced that it had entered into a strategic alliance with Western Plains Petroleum Ltd. (TSXV:WPP) ("Western Plains") that would see Western Plains acquire a 50% interest in Nordic's land holdings and heavy oil wells in Lloydminster, Alberta, Donald P. Benson, Nordic Chairman and CEO today announced that Nordic has entered into a formal purchase and sale agreement with Western Plains.
Under the terms of the Agreement, Western Plains will acquire a 50% interest in Nordic's 26 Local Service Districts (LSDs) (net 1,060 acres) of land in Lloydminster including nine heavy oil wells currently capable of production, plus an additional five wells drilled at the end of 2009. Since becoming contract field operator of the Nordic wells in mid-April 2010, Western Plains has re-activated eight of Nordic's shut-in heavy oil wells, which are now producing approximately 85 to 90 bbls/d.
Western Plains will acquire its 50% participating interest in the Nordic property for an aggregate consideration of $2.2 million, including a $100,000 non-refundable cash deposit, which has been received by the Company. The effective date of the Acquisition is April 12, 2010, with closing anticipated to occur no later than July 31, 2010.
The closing of the Acquisition is subject to the completion of a number of conditions, including the completion of a private placement by Western Plains in the amount of $1,500,000 and receipt of all necessary regulatory and third party approvals, including the approval of the TSX Venture Exchange.
"As we stated in our April 13 News Release, this deal with Western Plains is of significant magnitude and importance for Nordic Oil and Gas Ltd.," Mr. Benson stated. "In addition to allowing us to settle with a number of suppliers, it provides us with another significant influx of capital, which will allow us to move ahead with such initiatives as bringing on the five new wells in Lloydminster and developing our projects in Joffre and Talbot Lake, Alberta, and Preeceville, Saskatchewan."
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 Exchange.
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 & Gas Ltd.
For further information: For further information: Don Bain, Corporate Secretary, Nordic Oil and Gas Ltd., Tel. (204) 229-7751, Fax: (204) 943-1829, E-mail: firstname.lastname@example.org, www.nordicoilandgas.com