Nordic Completes Drilling Of New Viking Well At Joffre
WINNIPEG, Oct. 8 /CNW/ - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. ("Nordic" or the "Company"), today announced that the Company has received an updated Reserves and Engineering Report from an independent petroleum engineering company, which credits Nordic with a substantial increase in its Proved + Probable Reserves at Lloydminster, Alberta. This is largely due to the Company's new 16-6-50-2 W4 heavy oil well, which has been on production since the third week of September. The well has been producing from the General Petroleum zone, the first Nordic well to produce from this zone.
Total Proved + Probable Reserves of heavy oil as at October 1, 2009, have
increased to 888 MSTB*, compared to 805 MSTB at the beginning of 2009 and 540
MSTB in the prior year. This is broken down as follows:
- Total Proved Reserves: 447 MSTB (compared to 395 MSTB as at
January 1, 2009)
- Total Probable Reserves: 440 MSTB (compared to 410 MSTB as at
January 1, 2009)
As a result, the revised Reserves and Engineering Report also states that the Net Present Value of Nordic's estimated future net revenue based on forecast prices and costs before income taxes at 10% has risen nearly 25% since the start of the year to $17.473 million.
"This clearly indicates that Nordic continues to display strong production and reserve growth in its key regions," Mr. Benson stated. "In addition, given that we also recently announced that the Company is in the process of getting prepared for a new 13-well drilling program to much deeper depths at Lloydminster, we anticipate that the new 2010 Reserves and Engineering Report will be substantially stronger."
In other news, Mr. Benson also noted the Company has completed drilling its previously announced new gas well in Joffre, Alberta. The new well will be perforated in the Viking zone in the coming days.
"The logs show the Viking zone on this new well to be similar to the Viking zone in another well in the same section," he stated. "In the past, wells in this zone have been good producers for us.
"In addition, the logs from this new well are prospective in the Basal Belly River, the Belly River and the Edmonton zones," he added.
* MSTB - 1,000 stock tank barrels of oil
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.
The revised evaluation and the classification of the Nordic reserves were conducted by Chapman Petroleum Engineering Ltd. as of October 1, 2009, as per the guidelines of the Canadian Oil and Gas Evaluation Handbook ("COGEH"). Complete definitions of these reserves classifications can be found within the COGEH. The reserve assignment is representative of the development of the Company's property at Lloydminster, Alberta, however it does not include resources from Nordic's Joffre, Alberta, Talbot Lake, Alberta or its Preeceville, Saskatchewan properties. The estimated values disclosed do not represent fair market value
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. 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. 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: Donald Benson, Chairman & CEO, Nordic Oil and Gas Ltd., Tel: (204) 956-5042, Fax: (204) 897-7154, E-mail: email@example.com; Don Bain, Corporate Secretary, Nordic Oil & Gas Ltd., Tel. (204) 229-7751, Fax: (204) 943-1829, E-mail: firstname.lastname@example.org; www.nordicoilandgas.com