WINNIPEG, July 6 /CNW/ - Donald Benson, President & CEO of Nordic Oil and Gas Ltd. ("the Company", or "Nordic") today provided the following update on various initiatives either underway or planned by the Company:
The Company is poised to return to Saskatchewan later this summer, where it has its largest asset holdings, to drill a new exploration well near Endeavour, a little southeast of the community of Preeceville. Based upon the analysis of our recently completed seismic in the area, a location has been identified and Nordic plans to drill the well in August.
"Although we were not successful in bringing a well into commercial production two years ago in Saskatchewan, we are excited about the prospects of our newly identified location and eagerly anticipate getting back into this region and drilling this new well," Mr. Benson stated.
"The location is offset from a 1950s well, which encountered oil in four different intervals," he added. "The newly shot seismic identifies that the 1950s well was drilled on a low, whereas our planned location is on a structural high. The 1950s well also indicated the presence of a salt cap, which we feel acts as a seal."
The previously announced sale of an interest in Nordic's land holdings and heavy oil wells in Lloydminster, Alberta is expected to be completed by July 28, 2010.
Once the sale has closed, the five new wells drilled by Nordic at the end of December 2009 will be equipped and brought on to production. Since announcing this sale in mid-April 2010, the contract field operator has re-activated nine of Nordic's shut-in heavy oil wells, which are now producing approximately 100 to 110 barrels per day.
The Company has recently signed three Authorization For Expenditures (AFE) for the completion of three Coal Bed Methane wells drilled in Joffre back in 2007. The operator of these wells has indicated it should have production flow rates available within the next 90 days.
Also at Joffre, Nordic anticipates proceeding this summer with the completion and subsequent tie-in of three additional standing natural gas wells.
At Talbot Lake, the Company intends to proceed with the drilling of three shallow natural gas exploration wells in December.
"As we start the third quarter, we see a busy few months ahead of us in all of the areas where we own land and we anticipate that this will lead to higher production volumes and stronger revenue for the second half of the year," Mr. Benson stated. "We also look forward to adding to our production in Joffre and getting into the Talbot Lake region where the three new wells are offsetting existing producing shallow gas wells."
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: firstname.lastname@example.org, www.nordicoilandgas.com