Nordic Oil and Gas Ltd. Announces Third Quarter and Nine Months Financial
Results for the Period Ended September 30, 2009
9-Months Results ----------------
Revenue from oil, natural gas and Coal Bed Methane ("CBM") sales for the nine-month period (including liquids and transport revenue and interest revenue) totalled
Cash, short term investments, accounts receivable, deposits and deferred costs for the first nine months of the year totalled
Total assets as at
General and administrative expenses for the first nine months of 2009 totalled
When taking into consideration future income tax recovery, the Company recorded a net loss of
Third Quarter Results ---------------------
Revenue for the three-month period ended
General and administrative expenses for the three months under review totalled
For the quarter, the Company recorded a net loss of
Production Comparisons ----------------------
Average daily gas production volume for the three months ended
Average daily heavy oil production volume for the three months ended
Quarterly Corporate Review --------------------------
In early July, the Company announced its intentions to undertake a new non-brokered private placement offering for up to 10,000,000 units at a price of
In late July, in conjunction with its Joint Venture partner, Western Warner Oils Ltd., Nordic announced that it had entered into a strategic development agreement with a major international oil company whereby Nordic has the opportunity to earn an interest in this company's land in Preeceville, Saskatchewan. The ensuing exploration work on the lands will result in this company having the option to participate on a 50-50 go forward basis with Nordic, or allow Nordic to retain a 100% interest in the land with the other company earning a Gross Overriding Royalty. This company owns approximately 153,600 acres of land in Preeceville situated a few miles southeast of the Nordic lands.
Also at this time, the Company stated that survey work had commenced on a five-well drilling program on the Nordic land in Preeceville, noting that "with new drilling technology available to us, we will be successful in unlocking the enormous reserves of natural gas that the consultants have confirmed is in the region."
In September, Nordic announced that it had completed drilling a new heavy oil well on its Lloydminster property. The well was TD'd ('Total Depth drilled') in the General Petroleum (GP) zone, and the logs have indicated that the Company has pay in both the Sparky and GP zones. In late September, the Company announced its intention to undertake a private placement offering of up to
Also in late September, the Company announced that its new 16-6-50-2 W4 heavy oil well in Lloydminster was on production, and that the well was producing from the General Petroleum zone, the first Nordic well to produce from this zone.
Subsequent to the end of the third quarter, on
Also in October the Company received an updated Reserves and Engineering Report from an independent petroleum engineering company, crediting Nordic with a substantial increase in its Proved + Probable Reserves at Lloydminster. Total Proved + Probable Reserves of heavy oil as at
- Total Proved Reserves: 447 MSTB (compared to 395 MSTB as at January 1, 2009) - Total Probable Reserves: 440 MSTB (compared to 410 MSTB as at January 1, 2009)
As a result, the revised Reserves and Engineering Report also states that the Net Present Value of Nordic's estimated future net revenue based on forecast prices and costs before income taxes at 10% has risen nearly 25% since the start of the year to
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, should change.
* The term BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The TSX Venture Exchange has not reviewed nor accepts responsibility for the adequacy or accuracy of the contents of this News Release.
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For further information: Don Bain, Corporate Secretary, Nordic Oil and Gas Ltd., Tel. (204) 943-1810, Fax. (204) 943-1829, E-mail: [email protected], www.nordicoilandgas.com
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