Total Proved Reserves Up Significantly; Number of New Drillable Locations
WINNIPEG, April 20 /CNW/ - Donald Benson, Chairman and Chief Executive
Officer of Nordic Oil and Gas Ltd. (TSXV: NOG) ("Nordic" or "the Company"),
today announced that the Company has received its 2006 Engineering Report and
that it will be filing its Statement of Reserves and Other Oil and Gas
Information on SEDAR shortly. The Report provides an independent evaluation of
certain Nordic oil and gas assets in Joffre, Alberta, Canada, as at
December 31, 2006.
The Report states that for conventional gas, Total Proved Reserves were
up substantially to 244.7MMcf as opposed to 185.5MMcf at the end of 2005. In
evaluating the Company's CBM reserves, Total Proved, as at December 31, 2006,
was 611.9MMcf, compared to nil at the end of last year; and, for Natural Gas
Liquids, Total Proved at the end of 2006 was 0.8Mbbl, compared to 0.4bbl at
the end of 2005. This translated into 143.6Mboe(*) as at the effective date
versus 31.3Mboe(*) at the start of the year.
The Report also indicates that the Company's Proved plus Probable
Additional for Coal Bed Methane (CBM) had risen sharply to 1,102.7MMcf as at
the effective date, compared to 107.8MMcf at the end of 2005, however the
Proved plus Probable Additional for Natural Gas had declined to 585.3MMcf from
1,955.6MMcf at the end of last year.
Furthermore, the Report includes 56 new locations of wells to be drilled
in the Joffre area as follows:
- 25 new CBM locations in the Horseshoe Canyon
- 24 new Belly River locations for conventional gas
- 4 new Basal Belly River locations for conventional gas, and
- 3 new Viking locations for conventional gas
While these new locations were noted in this year's Report, the engineers
also removed a number of former locations that had appeared in previous year's
Reports, citing the fact that no new wells had been drilled at these locations
in 2006. This is due to the fact that these lands are currently involved in
litigation with the lessor of the free-hold leases, which has prevented the
Company from drilling any wells on the lands.
"While we are obviously delighted to see our Total Proved Reserves
increase this past year along with the number of new locations now available
to us for drilling, we are nevertheless disappointed that these other
locations have been dropped," commented Mr. Benson.
At present, Nordic Oil and Gas Ltd. has six producing wells in the Joffre
area, along with three Coal Bed Methane wells and one Belly River well drilled
and cased. It is anticipated that these wells will be on production in the
second quarter of 2007.
Nordic Oil and Gas is a junior oil and gas exploration company, which is
listed on the TSX Venture Exchange and trades under the symbol NOG.
(*) 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.
For further information:
For further information: Donald Benson, Chairman & CEO, Nordic Oil & Gas
Ltd., Tel: (204) 956-5042, Fax: (204) 897-7154, E-mail: firstname.lastname@example.org