WINNIPEG, Aug. 3 /CNW/ - Nordic Oil and Gas Ltd. (the "Company) TSXV: NOG) announced that it has exercised its right to terminate the asset purchase agreement dated May 21, 2010 (the "Asset Purchase Agreement") between the Company and Western Plains Petroleum Ltd. pursuant to which the parties had agreed that Western Plains would acquire a 50% interest in Nordic's land holdings and heavy oil wells in Lloydminster, Alberta.
The Asset Purchase Agreement had contemplated the closing of the transaction by July 31, 2010.
"Unfortunately, this will delay the repayment of certain liabilities, however we believe that a resolution on the matter relating to the sale of the Lloydminster assets or the re-financing of the Company will be concluded in the near term," Mr. Benson stated.
While to date Western Plains has not been able to conclusively demonstrate to Nordic that it has obtained the necessary financing to conclude the transaction, Nordic believes Western Plains may be able to secure satisfactory financing in a timely manner enabling it to come back to Nordic and negotiate a purchase on satisfactory terms. However, as yet Western Plains has not communicated its intentions to Nordic.
In the interim, with rising oil prices (oil closed at $81.49 per barrel on Monday, up $2.54 from Friday's $78.95 close), Nordic will be exploring all avenues including refinancing and other potential buyers.
In other news Mr. Benson also noted that the Company has completed the surveying of its new well location in Endeavour, Saskatchewan and will be moving toward the licensing of the new well.
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