WINNIPEG, Sept. 15, 2011 /CNW/ - Donald Benson, President of Nordic Oil
and Gas Ltd. ("the Company" or Nordic"), today provides the following
insight into the Company's planned initiatives for the remainder of
The Company continues to work toward a satisfactory resolution to the
matter of the wrong setting tool being supplied during the acid squeeze
on its 4-11-35-4 W2 well. Until this has been resolved the Company will
not proceed with re-doing the job.
"We remain very upbeat about the oil potential within the area. Based on
the analysis of the samples acquired during the drilling of the well,
it is believed that the well penetrated either a new, or the edge of a
new oil pool in the Red River Formation," Mr. Benson stated.
The abnormally high concentration of C8-C10 (2.8 PPM) in this sample
supports this finding.
"Analysis of 11 fluid samples exhibit significantly high concentrations
of benzene indicative of oil accumulations," he stated.
"Of particular significance is swab PB26Z (combined swab for intervals
937-939.5, 927-930, 917-920.5), which shows a benzene level of 2.55
PPM, plus significant concentrations of toluene, ethyl benzene, and
xylene," said Paul Lafleur*, P.Eng, President of Petro-Find Geochem,
the company that made the initial discovery of the oil seeps in the
region back in 2008.
With respect to the area as a whole, the permit that Nordic acquired
from an international energy company expires on August 12, 2012, and
Nordic has fulfilled all of its requirements set forth in the permit.
In August 2012, the Company will select the lands that it will retain
under new leases from the Saskatchewan government.
In addition to this oil play at Endeavour, the Company also has a
Colorado Shale Gas resource play there. Analysis of the four wells
drilled by our predecessor has shown that Nordic has up to 11 Billion
Cubic Feet (BCF) of Shale Gas per section.
"A major Canadian energy company has recently completed a test of
shallow, shale gas in northern Alberta at a depth of 250 metres to 290
metres, utilizing horizontal drilling," said Mr. Benson, "which gives
us confidence that this method should work for us at Endeavour."
The Company's primary attention is now being focused on its Weyburn
property in southeastern Saskatchewan, where it plans to test the
Bakken, Red River and Midale/Frobisher formations.
"There is an indication of seismic highs on all three formations, and we
have identified four potential locations for drilling," Mr. Benson
An offset well in the area has produced 36,000 barrels since 1991, and
originally produced at a rate of 75 barrels of oil per day (BOPD) from
the Midale/Frobisher formation.
Furthermore, the Company is currently in negotiations to acquire
additional land in the immediate area.
The Company is presently in the midst of arranging for additional
seismic to be shot on its recently acquired land in Lloydminster, where
it now has a natural gas well on production. Nordic is currently
producing 45 BOPD of heavy oil and 15 BOEs/day** of natural gas in the
"We anticipate that the new seismic will allow us to identify a new
location for the drilling of a heavy oil well," he stated.
Drumheller, Alberta is where the Company, in conjunction with its joint
venture partner, Western Warner Oils Ltd., has 3,856 hectares (9,528
acres) of coal leases.
"We intend to commence an exploration program to map the upper and lower
Mannville coal formations from existing wells on our property, and
perhaps also shoot some seismic," Mr. Benson said.
An independent consulting company previously determined that the leases
contain approximately 54,000,000 recoverable tonnes of low sulphur,
sub-bituminous coal in the Horseshoe Canyon formation. Preliminary
evaluation of the mining potential of this property historically
concluded the total calculated in place coal was 95,951,031 tonnes with
53,905,623 tonnes potentially recoverable.
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
* Paul Lafleur is a graduate Geological Engineer from the Colorado
School of Mines and a graduate of the University of Western Ontario. He
has many years of experience practicing his Profession as a geologist,
engineer and mineral economist. During the last eight years, Mr.
Lafleur has been engaged as a Geological Engineer to conduct
geochemical soil gas surveys for oil and gas. Currently, he is the
President of Petro-Find Geochem Ltd. of Saskatoon SK.
** In certain parts of this document, the term BOE is used. BOEs may be
misleading, particularly if used in isolation. A BOE conversion ratio
of 6 Mcf: 1 barrel is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
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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