WINNIPEG, May 26, 2011 /CNW/ - Mr. Donald Benson, Chairman and Chief
Executive Officer of Nordic Oil and Gas Ltd. (the "Corporation"), is
pleased to announce that Nordic has finalized an agreement to obtain a
seismic option from a major, international, US-based oil Company (the
"Optioner") that will lead to the drilling of a new test well in the
Bakken Oil Formation in east-central Saskatchewan.
The deal calls for Nordic to purchase three existing 2D seismic lines
totaling approximately 15.7 kilometres prior to August 15, 2011.
Following interpretation and analysis of the findings, Nordic will then
select a location to commence drilling a new test well later this year.
In addition, Nordic is also currently negotiating to obtain additional
land in the immediate area.
"This is an acquisition of significant importance to the Company." Mr.
Benson stated. "It gives us our first entry into the prolific Bakken
region of east-central Saskatchewan and we will be moving forward on
this initiative as soon as possible.
"Of particular significance is the fact that a well drilled less than 15
miles from the acquired land initially produced over 500 barrels of oil
per day," he added.
About The Bakken Formation
Industry officials have stated there could be as many as 503 billion
barrels of oil in the Bakken Formation that runs under Saskatchewan,
Manitoba, North Dakota and Montana. Saskatchewan could be sitting on 25
billion to 100 billion barrels of sweet, light crude oil in the Bakken
formation in the southeast part of the province, according to industry
and government estimates.
Given that about 25 per cent of the Bakken is in Saskatchewan, it stands
to reason that 25 per cent of the oil is there too.
By comparison, the heavy oil resource in west-central Saskatchewan,
which is considered to have great potential for future production, is
estimated to be 25 billion barrels of oil in place.
The Bakken is a geological formation of siltstone and sandstone about
300 metres below the Mississippian formation, where most Saskatchewan
light oil production comes from. Bakken wells tend to be highly
productive (200 barrels a day or more), producing sweet, light crude
oil with 41 degree gravity, basically the highest grade of crude oil
you can find anywhere.
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
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
For further information:
Nordic Oil and Gas Ltd.