Net Pay Increases At Maderas Negras, Oil Flow At San Bartolo

    Trading Symbol: NRS

    VANCOUVER, June 30 /CNW/ - Norwood Resources Ltd. (the "Company")
announces that in preparation for the commencement of the production testing
of the Maderas Negras and San Bartolo wells in late July, 2008, the Company
has continued to refine the petrophysical model of Maderas Negras. Using data
from Core Lab's analyses of whole core recovered during the drilling program
and Schlumberger's additional evaluation of the well logs, the calculated
amount of net hydrocarbons has increased to 286 feet from the previously
reported 138 feet in the Brito Formation. These values are determined using
the same reservoir criteria used by Schlumberger for establishing net
hydrocarbon as previously announced for both San Bartolo and Maderas Negras
    Cased hole wireline logging and testing of the Brito Formation in San
Bartolo well requires that 11 bridge plugs set across previously perforated
and tested intervals be removed from the well bore. The Company, using its
Ideco 35 rig, has re-entered the wellbore and upon drilling out the first
bridge plug at a depth of 5900 feet, encountered volumes of gas and oil. The
Company commenced swab stimulation and lifting from the perforated interval
5915'-5950' for approximately 10 hours resulting in a stabilized recovery of
45 - 47 API gravity oil and gas. The tested interval was previously calculated
to have 30 feet of net reservoir but only 1.5' of net hydrocarbons. Although
no rates were measured, the volumes of oil and gas recovered at the surface
are strongly suggestive that the calculation of net hydrocarbons attributed to
this interval is too conservative. Subsequent to termination of the lifting
procedure, the well continued to flow gas. The well was then shut-in and flow
terminated when the testing packer was withdrawn. The Company will return to
this interval in the future to establish a potential production rate.
    Based on the initial performance reaction of this interval to limited
swab stimulation, the Company is planning to swab stimulate and test nine of
the remaining ten perforated intervals in the well. The exact number of
intervals that can be swab stimulated will be dictated by the date of arrival
of Schlumberger's testing equipment and personnel from Villahermosa, Mexico
and the Company's near term ability to contract and build petroleum storage
    In addition to the Brito formation potential, the Company and
Schlumberger are independently evaluating the Masachapa formation in the San
Bartolo wellbore where 387 feet of net hydrocarbons has been identified on
logs. Other Masachapa drill targets have also been identified at San Bartolo
with a maximum depth of 3200'. The first of these drill tests is being planned
for later this year.
    The Company's testing agreement with Schlumberger includes an option for
purchase of the Electric Submersible Pump (ESP) which makes up part of the
testing equipment. Exercising of this option would permit the Company to
continue with long-term testing and production.
    In other news, the Company announces the appointment of Mr. David
Klepacki to the position of Vice President of Exploration. Dave has 23 years
of oil and gas experience, principally as a geophysicist. He has drilled more
than 120 wells around the world, establishing over 85 million barrels of
reserves. Dave has a B.Sc. (Hons) from the University of Massachusetts. He did
his graduate work at the University of British Columbia in Vancouver and
received a Ph.D from the Massachusetts Institute of Technology. In 1985 Dave
joined Exxon Production Research and in 1989 was transferred to Esso Canada.
In 1992 Dave joined PanCanadian Petroleum to help establish their
international exploration team. Dave has spent the last 10 years as an
independent geophysical consultant in Calgary, working in several start-ups
and junior oil and gas companies. He has been consulting for Norwood since
July 2007.


SOURCES LTD. "Raymond Cahill" Raymond Cahill President & CEO 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: To find out more about Norwood Resources Ltd.
(NRS) contact Raymond Cahill, President & CEO or Lee DiStefano, Chief
Operating Officer, E-Mail: or Telephone:  (604)

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