WINNIPEG, Jan. 28 /CNW/ - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. ("the Company" or "Nordic"), is pleased to provide an update on several of the Company's properties and the initiatives that are either underway or being planned:
Back in July of last year, the Company, along with its Joint Venture partner, Western Warner Oils Ltd., entered into a strategic development agreement with a major international oil company, whereby Nordic has the opportunity to earn an interest in six townships which that company owns in Preeceville. Plans call for new 3-D seismic in the region to be processed and interpreted, which will provide Nordic with key information and data in the selection of its next well location.
"When we first began exploring this region, we were searching for what is known as the Prairie Evaporate Salt Collapse Edge'," Mr. Benson stated. "We now believe we have found the Salt Collapse Edge on our original holdings and these six townships contain a salt cap, which is acting as a trap for oil and/or gas.
"We further believe that with new drilling technology available to us, we will be successful in unlocking the enormous reserves of natural gas that industry consultants have confirmed are in the region, he added. "The test well that we will be drilling will be utilizing specialized equipment on the drilling of the shallower portion of the well, thereby allowing the gas, which we know to be there, to flow."
The Company continues to be bullish about its Preeceville lands, and, "we eagerly anticipate getting back to this region and drilling our test well," Mr. Benson added. "We were certainly buoyed by the fact that we discovered so many oil seeps in the region and although our initial exploration drilling activities in the area did not result in a commercially productive well, the findings that we uncovered gave us considerable optimism for a return to Preeceville."
TALBOT LAKE, ALBERTA
The Company's property near Talbot Lake in the Peace River Arch region of northwest Alberta is comprised of 7,040 acres of P&NG leases. The lands have been evaluated by independent geological and geophysical consultants and based on this evaluation the Company is very excited about the potential in the area.
"Various consultations are currently ongoing and we anticipate drilling our first well at Talbot Lake before break-up occurs in the region," he added. "Our interpretation of the seismic suggests that the location of the 1,500 metre-deep test well that we are planning correlates directly with an historic oil well drilled just two miles to the south of us."
As was noted in the Company's News Release dated January 21, 2010, Nordic plans to drill seven new heavy wells at Lloydminster. Seven wells were drilled at Lloydminster prior to the end of 2009, and the first two are now on production. The remaining five wells from this group will be placed on production during the first quarter.
"We have had a strong success rate in our drilling initiatives thus far at Lloydminster," Mr. Benson said. "Of the wells to date, 15 of 16 have been successful."
Also at Lloydminster, processing and interpretation of new 3-D seismic will be completed in the first quarter, "following which we expect to identify a location for our first horizontal well in the region. It is our hope that this will be the first of several new horizontal wells for the Company in Lloydminster."
Industry sources suggest that horizontal wells in this region will produce between 125 to 250 barrels of oil per day.
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.
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.
* The projections in this new release are consistent with the Company's
current Reserves and Engineering Report prepared by Chapman Petroleum
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) 832-7717, Fax. (204) 943-1829, E-mail: firstname.lastname@example.org