Will Undertake Additional Seismic and Reconnaissance Soil Gas Surveys
WINNIPEG, Jan. 8 /CNW/ - Donald Benson, Chairman and Chief Executive
Officer of Nordic Oil and Gas Ltd. (TSXV: NOG) ("Nordic" or, "the Company"),
announced today that the Company has selected two initial well locations to
commence its drilling program in Preeceville, Saskatchewan, where it
previously announced the discovery of numerous oil seeps. Furthermore, Mr.
Benson also announced that Nordic will commence a new seismic program in the
area as soon as possible, and will also engage Petro-Find Geochem Ltd.
("Petro-Find"), the company hired by Nordic to undertake the initial
hydrocarbon soil gas surveys in its two most northerly townships in
Preeceville, and who made the discoveries of the oil seeps, to undertake
additional reconnaissance soil gas surveys to assess the magnitude and
potential of the findings.
These initiatives stem from meetings conducted last week by Mr. Benson
with Nordic's geologist and geophysicist and, Paul Lafleur, P.Eng., President
of Petro-Find. It was at this time Mr. Lafleur also presented his full Report
on the geochemical soil gas surveys comprising 453 sample locations conducted
in Township 40 Ranges 4W2 and 5W2, and 22 sample locations in an area
surrounding the two adjacent wells in Township 39 Range 5W2. A summary of Mr.
Lafleur's Report on both Townships accompanies this News Release.
"One of the preliminary locations that we have identified for drilling
was selected based on the Petro-Find Geochem Report, while the other location
was chosen based on a combination of our own previously secured seismic data
and the Petro-Find Geochem Report," Mr. Benson stated. "We will begin as soon
as possible with the required environmental studies of both areas, following
which we will apply for the necessary well licenses. It is estimated that this
should take between four to six weeks to complete.
"Concurrently, we will also be undertaking additional seismic work in the
area where the oil seeps were discovered, and will also have Mr. Lafleur and
his people working on reconnaissance soil gas surveys," he added.
Commenting on his Company's Report, Mr. Lafleur stated that the results
were some of the highest readings he had ever seen: "In the course of the
survey some 34 oil seepage locations were found of which most were coincident
with the soil gas anomalies. In Petro-Find's view many, if not all of the
high-grade oil anomalies, especially those that are coincident with major oil
seeps, warrant further exploration by drilling.
"The surface anomalies suggest both stratigraphic and structural oil
traps. Many of the large anomalies are in a linear pattern suggesting fault
control. However, most of the anomalies have round or oval shapes and sharply
defined borders suggesting they are surface expressions of oil reservoirs
associated with collapse structures," he added.
Nordic anticipates commencing drilling the two new wells before the end
of the first quarter 2008.
HIGHLIGHTS OF PETRO-FIND GEOCHEM SOIL GAS SURVEYS
Township 40 Range 5W2
- A soil gas geochemical survey comprising 453 sample locations,
conducted in Township 40 Ranges 4W2 and 5W2, discovered some 30 high-
grade oil anomalies and major fairways as well as two natural gas
anomalies. In the course of the survey some 34 oil seepage locations
were found of which most were found to be coincident with the soil
gas anomalies. In Petro-Find's view many if not all of the high-grade
oil anomalies, especially those that are coincident with major oil
seeps, warrant further exploration by drilling.
- The surface anomalies suggest both stratigraphic and structural oil
traps. Many of the large anomalies are in a linear pattern suggesting
fault control. It is well known that the dissolution of salt beds in
the Devonian can cause collapse and entrapment of oil in the Devonian
and overlying Formations given the right conditions.
- The extensive fairways of anomalous values that appear to anastomose
represent the surface expressions of stratigraphic oil reservoirs in
sand bars in a deltaic environment. The Upper Mannville Formation is
the most likely prospect. It is reported that the cuttings from a
well in a neighboring property shows that the Mannville Formation in
this area is a well-sorted, porous and permeable sand, which could
host oil and gas reservoirs.
- The oil anomalies in the project area have low ratios of
methane/ethane indicating light oil and some condensate in the
underlying oil reservoirs. The high intensity UV fluorescence of the
oil seep samples indicates the underlying reservoirs, whether
economic or not, may contain high aromatics (i.e. BTEX).
- The major anomalies are extremely high-grade with ethane plus values
ranging from 2.5 to 27 ppm (270 times a background of 0.1 ppm).
Drilling will be needed to substantiate the threshold value for
commercial accumulations, but a soil gas anomaly of 1 ppm in oil
provinces elsewhere is the usual cutoff point. Therefore, the long
and wide fairways with values between 1 and 2.5 ppm present a number
of secondary targets. Many of the high-grade anomalies have been
well-defined by high-density sampling.
- Reconnaissance soil gas surveys are recommended to assess the oil and
gas potential of the SE quadrant of Township 40 Ranges 4W2 and 5W2,
which was difficult to access, as well as the four remaining
townships comprising Townships 39 and 38 Ranges 4W2 and 5W2. A winter
program would present a major opportunity to conduct surveys in areas
not accessible at any other time of the year because of extensive
bogs and lack of logging trails. These surveys would be of the
reconnaissance type to determine the likely areas for follow-up by
high density sampling.
A high-density survey is recommended to extend south the known anomalies
and fairways in Township 40 to connect them with the oil anomaly and fairways
discovered around the twinned wells. This survey should extend as far south as
the Western Warner Well, a distance of about four miles.
Section 34 Township 39 Range 5W2
- Results indicate that the project area is oil-prone with the
discovery of one oil anomaly immediately NE of the wells that is
coincident with two oil seeps. This anomaly may connect with a major
fairway in Township 40. Also found were anomalous values of methane
and ethane at the Western Warner Warman well site suggesting the
existence of a thermogenic gas reservoir at depth.
- The soil gas survey surrounding the twinned wells shows the southern
limit of a strong ethane plus anomaly extending NNE. The two oil
seeps are coincident with this anomaly which could extend a
considerable distance along a fairway to join others in Township 40.
- The one soil gas sample taken at the Warner well head to the south
shows anomalous values for methane and ethane. A methane/ethane ratio
of 17.6 indicates thermogenic natural gas at depth.
- The linear relationship of the three seeps in this area and a major
seep in Township 40 (No. 485) as well as the Warner Well in
Section 14 may indicate fault control.
- The fact that the 2003 Warner well exhibited a high concentration of
BTEX in the Mannville aquifer may indicate the existence of a major
oil pool in the opposite direction of the water flow, probably east
The first priority is to conduct a high density soil gas survey in a
three-mile wide swath from Township 40 south to the Warner well in Section 14
of Township 39, a distance of about four miles. A winter program would extend
south the known anomalies in Township 40 and define the oil anomaly and
fairways discovered around the twinned wells. It also could provide the answer
to why the two Warner wells were dry and what is the probable source of the
gas produced from the 1936 well over a period of many years.
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.
This news release contains certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical fact, that address events or developments that the
Corporation expects to occur, are forward looking statements. Forward-looking
statements are statements that are not historical facts and are generally, but
not always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and similar
expressions, or that events or conditions "will", "would", "may", "could" or
"should" occur. Although the Corporation believes the expectations expressed
in such forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results may
differ materially from those in forward looking statements. Factors that could
cause the actual results to differ materially from those in forward-looking
statements include market prices, exploration and drilling success, continued
availability of capital and financing and general economic, market or business
conditions. Investors are cautioned that any such statements are not
guarantees of future performance and actual results or developments may differ
materially from those projected in the forward-looking statements. Forward
looking statements are based on the beliefs, estimates and opinions of the
Corporation's management on the date the statements are made. The Corporation
undertakes no obligation to update these forward-looking statements in the
event that management's beliefs, estimates or opinions, or other factors,
The TSX Venture Exchange has not reviewed nor accepts responsibility for
the adequacy or accuracy of the contents of this News Release.
For further information:
For further information: Donald Benson, Chairman & CEO, Nordic Oil & Gas
Ltd., Tel: (204) 956-5042, Fax: (204) 897-7154, e-mail:firstname.lastname@example.org,