Company Also Undertakes New Flow-Through Offering
WINNIPEG, Aug. 14 /CNW/ - Donald Benson, Chairman and Chief Executive
Officer of Nordic Oil and Gas Ltd. ("Nordic" or the "Corporation"), today
announced that the Corporation's 11th well, which it believes to be the second
to encounter gas in the Basal Belly River zone in Joffre, Alberta, Canada, has
"We will run recorders into the well and following a two-day flow test we
will then undertake a six-day build-up test, which in turn will be followed by
a static gradient test," he stated. "From there, we anticipate undertaking
further testing in the Belly River and Edmonton zones."
In other news, Mr. Benson also announced today that the Corporation has
made an initial down payment on the lands to be acquired in Alberta, as per
its News Release dated June 29, 2007, with the closing date set at September
14, 2007, subject to customary industry regulations and conditions.
The Corporation 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
"As we stated in June these lands will provide Nordic with new core areas
for the Corporation and will be a strategic fit for our current production and
impending drilling activity at Joffre, Alberta," Mr. Benson said. "We are
confident that these new lands will be a positive addition to our already
strong holdings in Alberta."
In addition, the Corporation also announced its intention to undertake a
private placement offering (the "Offering") of 1,000,000 units (the "Units")
at a price of $0.20 per Unit for gross proceeds of $200,000. Each Unit will
consist of one Class A common share of the Corporation 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 will entitle the holder thereof to purchase one regular Class A common
share of the Corporation at a price of $0.30 for a period of 24 months from
the date of issuance.
Certain finders are expected to assist the Corporation by introducing
potential subscriber(s) for the Offering and, subject to compliance with
applicable legislation, will be entitled to receive fees equal to 6% of the
value of the Units sold pursuant to the Offering as well as warrants
("Finder's Warrants") equal to 8% of the number of Units sold pursuant to the
Offering. Each Finder's Warrant shall entitle the holder thereof to purchase
one regular Class A common share of the Corporation at a price of $0.30 for a
period of 24 months from the date of issuance.
All the terms of the Offering are subject to the approval of the TSX
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