Norwood Resources Ltd. - Independent petrophysical analysis of the Las Mesas & San Bartolo wells and seismic mapping have confirmed abundant in-place oil on the Oklanicsa Concession



    Trading Symbol: NRS

    VANCOUVER, Oct. 28 /CNW/ - Norwood Resources Ltd. (the "Company")
announces that the Company has received an independent evaluation of the well
logs from both San Bartolo and Las Mesas conducted by Fronterra Geosciences of
Houston, Texas. Integrating wire-line log data, core analysis, core
petrography (XRD and SEM), LPSA ("laser particle size analysis"), mud log data
and DST data, low resistivity / low contrast pay intervals have been
identified corresponding to the DST intervals where oil was recovered in both
Las Mesas and San Bartolo. These intervals were not originally recognized in
the previous petrophysical analysis as pay. The independent report by
Fronterra Geosciences summarizes pay as follows:

    
    -------------------------------------------------------------------------
    Well          Net Pay     Porosity    Permeability    Water Saturation
    -------------------------------------------------------------------------
                   (ft)          (%)          (mD)              (%)
    -------------------------------------------------------------------------
    Las Mesas      193.8        11.2          12.0             26.4
    -------------------------------------------------------------------------
    San Bartolo    272.3        11.3          11.0             36.0
    -------------------------------------------------------------------------

    

    The report confirms formation damage in many of the intervals especially
in Las Mesas where the borehole was open longer before logging. Some
environmental effects due to wash outs and break outs make these and previous
calculation subject to errors, however these analysis have incorporated and
recognized the presence of clays in the sands and accounted for at least some
of its effects on the resistivity measurements.
    The Company has also completed re-mapping of the Brito formation markers
incorporating synthetics from the well logs. This work has reconfirmed the
presence of structural closures of significant size relating to both the San
Bartolo and Las Mesas locations, although the Las Mesas location now appears
to be structurally lower than originally thought. This exercise indicates the
possibility of combined structural and stratigraphic trapping mechanisms.
Fourteen prospects have been identified (7 new) ranging in size from 5600
closure acres to 500 closure acres. Based on the 30-foot pay interval
identified by DST No.7 in the San Bartolo well and not considering any of the
other identified pay intervals, the Company has completed an internal
volumetric resource calculation ('Prospective Resource'). For all prospects,
the total estimated potential in-place volume is 439 MM BBLS with a potential
recoverable volume of 66 MM BBLS (using 15% recovery factor). For the
individual prospects, the potential in-place volume range is from 118 MM BBLS
to 10 MM BBLS.
    Management cautions shareholders that these resource estimates do not
currently qualify as reserves under National Policy NI 51-101. David Klepacki,
a qualified person and a senior geophysicist with the Company, provides these
estimates. "Prospective resources (as defined by the COGE Handbook) are those
quantities of oil and gas estimated on a given date to be potentially
recoverable from undiscovered accumulations. If discovered, they would be
technically and economically viable to recover."
    The next phase of exploration is being designed with the objective of
achieving and measuring sustained commercial production rates from this
reservoir. This will allow for an accurate calculation of reserves from all of
the potential pay zones identified which will be prepared by an independent
qualified reserves auditor.
    The Company has further received an oil analysis report from Baseline
Resolution, Inc. of Woodlands, Texas, which included API gravity, high
resolution whole gas chromatography (GC), MPLC separation for saturate and
aromatic fractions and gas chromatography / mass spectrometry. The report
based on three oil samples from three DST recoveries (one from Las Mesas and
two from San Bartolo) is between 32 and 34 API gravity normal oils. These oils
were derived from Tertiary age mixed organic (Type 1, II, and III kerogens)
shale source rocks. Although all oils analyzed are considered to be from the
same source rocks, Las Mesas oils were derived from a slightly different more
marine shale facies while the San Bartolo oils are marine with deltaic
influence. These oils are considered moderately mature with Ro estimated
between .70% (Las Mesas) and .75-.80% (San Bartolo) indicating early to early
main oil window expulsion.
    The Company will continue to advise shareholders during the coming weeks
regarding progress with the retooling efforts and schedule estimates for
commencement of the next drilling program.

    
                             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: about Norwood Resources Ltd. (NRS) contact:
Raymond Cahill, President & CEO; or James Charuk, Executive Vice President,
Exploration, E-Mail: info@norwoodresources.com, Telephone: (604) 642-6566

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NORWOOD RESOURCES LTD.

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