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Company Also Announces New Private Placement Offering
WINNIPEG, Nov. 30 /CNW/ - Donald Benson, Chairman and Chief Executive
Officer of Nordic Oil and Gas Ltd. ("Nordic" or the "Corporation"), today
announced that the Corporation has received additional data and interpretation
from Petro-Find Geochem Ltd., the company hired by Nordic that discovered the
evidence of oil seeps in its two most northerly townships in Preeceville.
It was originally thought that Petro-Find had discovered 29 locations,
however this has been updated to 34, "because several locations were
amalgamated as one showing," noted Paul Lafluer, President of Petro-Find.
"Altogether, evidence of oil seeps was found at 34 locations with at
least 4 major areas, including one extending 400 feet along the Pewei River,"
Mr. Lafleur added. "The seeps are interpreted to be leakages from faults
intersecting oil reservoirs at depth. Further field work is required to
ascertain the full extent and pattern of these leakages. Correlation of the
seepages with the geochemical soil gas survey is expected by mid-December."
Given this new information, Mr. Benson also announced today that the
Corporation intends to undertake a new non-brokered private placement offering
of up to 10,000,000 units at a price of $0.30 per Unit for gross proceeds of
$3,000,000 to various subscribers. Each Unit would consist of one Class A
common share of the Corporation 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. Each whole Warrant would entitle the holder thereof to
purchase one regular Class A common share of the Corporation at a price of
$0.40 for a period of two years from the date of issuance.
Certain finders are expected to assist the Corporation by introducing
potential subscriber(s) for the new Offering 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
Corporation at a price of $0.40 for a period of 24 months from the date of
The Corporation anticipates multiple closings throughout December.
All terms of the new Offering are subject to the approval of the TSX
"It is our intention to use the money raised to finance the drilling of
three new wells in Preeceville," Mr. Benson said. "As we have stated
previously, when we receive the completed geochemical soil gas survey from our
consultant, Petro-Find Geochem, we will then be in position to correlate this
information with our proprietary seismic surveys. This will provide us with a
clearer understanding of the underlying structures, which in turn will give us
a better idea as to where the wells should be drilled."
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.
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, should change.
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:firstname.lastname@example.org,