Norwood Purchases 3 Rigs & Increases Commitment to Nicaragua



    Trading Symbol: NRS

    VANCOUVER, Nov. 16 /CNW/ - Norwood Resources Ltd. (the "Company") is
pleased to announce that the Company has purchased 3 drilling rigs, 17,000
feet of drill pipe and all associated yard equipment for drilling operations
from Hoco Drilling LLC, a private drilling company in Oklahoma.
    The purchase price paid for this equipment is $5,729,280. The principal
rig is a truck mounted Cabot 900 with a collapsible derrick, which is capable
of drilling to 11,000 feet. The other rigs, an Ideco H35 and a National T20,
are capable of drilling depths of between 6500 to 7000'. The company intends
to modify the H35 so that it can be used as a work-over rig.
    Under the terms of the agreement, the Company issued $3,753,280 in cash
and a one-year convertible note for $2,000,000. The note, which expires on
November 15, 2008, is convertible into common stock of the company at a price
of $1.10 per share. Funds are currently being held in escrow pending receipt
of original titles from the State of Oklahoma.
    This purchase forms the major part of the Company's retooling process and
puts the Company in an advantageous position to aggressively explore its
concession in Nicaragua with a full suite of drilling equipment to meet its
requirements for the short and medium term. The flexibility of this equipment
will significantly improve daily drilling rates and location moving time
thereby improving the level of efficiency in terms of time and cost per well
drilled. The anticipated payout period versus contracting an industry driller
is 5 months or 5 wells (6500').
    Norwood's drilling team is modifying the equipment to meet the Company's
specific drilling requirements. Once completed, the equipment will be
transported to the port of Houston and shipped to the port of Rama in
Nicaragua.
    To find out more about Norwood Resources Ltd. (NRS) contact:

    WE SEEK SAFE HARBOUR

    This press release contains certain forward-looking statements. While
these forward-looking statements represent our best current judgment, they are
subject to a variety of risks and uncertainties that are beyond the Company's
ability to control or predict and which could cause actual events or results
to differ materially from those anticipated in such forward-looking
statements. Accordingly, readers should not place undue reliance on
forward-looking statements.

    THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY
    OR ADEQUACY OF THIS RELEASE




For further information:

For further information: Raymond Cahill, President & CEO, E-Mail:
info@norwoodresources.com, Telephone: (604) 642-6566

Organization Profile

NORWOOD RESOURCES LTD.

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