Three CBM Wells Placed on Production at Joffre; Several Other Wells Coming on Soon
WINNIPEG, Aug. 27 /CNW/ - Donald Benson, President of Nordic Oil and Gas Ltd. ("the Company", or "Nordic") announced today that the Company intends to undertake a new non-brokered private placement offering ("the Offering") for up to 6,000,000 units at a price of $0.10 per Unit for gross proceeds of $600,000 to various subscribers.
Each Unit will consist of one Class A common share of the Company issued as a "Flow-Through share" within the meaning of the Income Tax Act (Canada) and one-half of one Class A common share purchase Warrant ("a Warrant"). Each whole Warrant would entitle the holder thereof to purchase one regular Class A common share of the Company at a price of $0.15 for a period of 18 months from the date of issuance.
The securities issued pursuant to the Offering are subject to a four-month holding period from the date of closing. The Company anticipates multiple closings in the coming weeks.
Certain finders are expected to assist the Company by introducing potential subscriber(s) to the new Offering and, subject to compliance with applicable legislation, will be entitled to receive fees equal to 10% of the purchase price of the new Units sold pursuant to the new Offering, as well as warrants ("Finder's Warrants") equal to 10% of the number of new Units sold pursuant to the new Offering. Each new Finder's Warrant shall entitle the holder thereof to purchase one regular Class A common share of the Company at a price of $0.15 for a period of 18 months from the date of issuance.
All terms of the new Offering are subject to the approval of the TSX Venture Exchange.
With respect to Lloydminster, Nordic and its new partners will immediately be moving forward to complete the five wells that Nordic drilled last December, and it is anticipated that they will be on production in the next 30 to 45 days.
In addition, Nordic is also set to embark on a new exploration drilling initiative in the Endeavour/ Preeceville region of east-central Saskatchewan.
"Having completed the sale of a portion of our assets in Lloydminster, we will also now be focusing on drilling our new exploration well in Saskatchewan, and the money raised from this private placement offering will greatly assist us in moving ahead with this initiative," Mr. Benson stated. "We will be applying for the well license shortly and will soon move toward securing a rig. We anticipate drilling of this new well will commence before the end of September."
In other news, Mr. Benson also noted today that Nordic recently put on to production its three Coal Bed Methane ("CBM") wells in Joffre, Alberta that were drilled in 2006 in conjunction with its Joint Venture partner. "Our geologist is currently working on mapping the CBM on our land in Joffre, and upon completion we will have our reservoir engineer re-evaluate our reserves in the area," he said.
Furthermore, the Company is also about to tie-in its 5-18-38-24 W4 Belly River well at Joffre, and is re-working its 6-24-38-25 W4, 3-18-38-24 W4 and 10-12-38-24 W4 wells, also in Joffre.
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. Nordic was one of the "2008 TSX Venture 50" companies, a ranking of the top 10 public venture capital companies in five industry sectors listed on the TSX Venture Exchange.
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. properties, 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, including that the estimates and projections regarding the properties are realized. 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: Don Bain, Corporate Secretary, Nordic Oil and Gas Ltd., Tel. 204-229-7751, Fax: 204-943-1829, E-mail: email@example.com, www.nordicoilandgas.com