WINNIPEG, June 29 /CNW/ - Donald Benson, Chairman and Chief Executive
Officer of Nordic Oil and Gas Ltd. ("Nordic" or the "Corporation"), is pleased
to announce the Corporation has entered into an agreement to acquire
approximately 8,000 acres of Petroleum & Natural Gas leases in the Peace River
Arch and Lloydminster regions of Alberta. Nordic will acquire these assets for
cash considerations of $200,000, plus 1.5 million Class A Common Shares of the
Corporation at a price of $0.30 per share, for a total acquisition price of
$650,000. The acquisition is expected to close on or about August 15, 2007,
with the closing being subject to customary industry regulations and
These lands will provide Nordic with new core areas for the Corporation
and will be a strategic fit for its current production and impending drilling
activity at Joffre, Alberta. The lands are being acquired from companies that
are active in assembling Petroleum & Natural Gas leases for sale to junior and
start-up oil and gas companies. The lands have been evaluated by independent
geological and geophysical consultants and based on this evaluation, and that
of management, the Corporation is very excited about the potential of these
"The success of other companies that have dealt with the vendors gives us
considerable confidence that these lands will be a positive addition to our
already strong land holdings in Alberta," said Mr. Benson, adding that this
acquisition triples the Corporation's land position in the province.
Mr. Benson noted that the Corporation would be moving into the
Lloydminster area as soon as possible, "where we are seeing heavy oil being
produced at a depth of 600 metres." Nordic anticipates that each well will
cost approximately $250,000 to drill and a further $150,000 to complete.
"The play in the Peace River Arch will initially be that of Blue Sky gas
at a depth of 525 metres," he added. "Both of these plays are in actively
producing areas, not unlike where we are located in Joffre."
Nordic currently is in the marketplace with a non-brokered Private
Placement Offering of up to 4,000,000 units (the "Units") at a price of $0.30
per Unit for aggregate gross proceeds of up to $1,200,000. Each Unit will
consist of one Flow-Through Common Share, within the meaning of the Income Tax
Act (Canada), plus one-half of a Share Purchase Warrant (the "Warrant") of the
Corporation. Each full Warrant will entitle the holder to purchase one regular
Class A Common Share of the Corporation at a price of $0.40 for a period of
two years from the date of issuance. The Flow-Through Shares and the warrants
underlying the Units will be subject to a 4-month hold period.
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 Company is listed on the TSX Venture Exchange
and trades under the symbol NOG.
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: email@example.com