Norwood commences mobilization of drilling equipment from Oklahoma to Nicaragua

    Trading Symbol: NRS

    VANCOUVER, Jan. 6 /CNW/ - Norwood Resources Ltd. (the "Company")
announces that it has now commenced mobilization of its drilling equipment
from Oklahoma to Nicaragua. The mobilization was delayed by severe weather
conditions prior to Christmas, which slowed the progress of modifying and
refitting of the new rigs to meet the upcoming program specifications and ship
scheduling issues.
    The Company has contracted Gateway Logistics group to handle the movement
of its drilling equipment from Stillwater, Oklahoma to San Bartolo, the
Company's staging location on the Pacific coast of Nicaragua. Along with the
rigs, Gateway will also consolidate other service companies' equipment in
Houston and mobilize by ship to the port of El Rama on the east coast of
Nicaragua and then by trucks to San Bartolo. The equipment is scheduled to be
on location by the end of January.
    Once on location, the Company will immediately commence the next phase of
field exploration. This program will involve drilling 2 new wells and a
re-entry to stimulate/frac several of the oil zones encountered in the San
Bartolo well during last year's drilling and testing program.
    As mentioned in previous releases, independent evaluations of the well
logs and drill stem testing ("DST") results conducted by both Object Reservoir
Engineering and Fronterra Geosciences "indicate that several potential
reservoir zones were significantly damaged during drilling and testing and
many of the test results were inconclusive. Significant potential may also
exist in zones previously thought to be either water bearing or tight." The
objective of the stimulation/frac program at San Bartolo is to attempt to
overcome the damage/invasion around the well bore and establish sustained
production rates and determine formation fluids from these zones.
    Simultaneously, a new location at Madres Negras has been selected and
will be drilled to exploit the same oil-bearing sand facies located in the San
Bartolo and Las Mesas wells. This location was identified as a priority drill
target during the seismic re-mapping process. This work confirmed the presence
of several structural closures of significant size, the one at Madres Negras
being the largest and up dip from San Bartolo.
    A second step out well in close proximity and slightly up dip from San
Bartolo is also planned upon satisfactory completion of the San Bartolo
stimulation program.
    For both new wells, the Company will use different drilling and
completion fluids and mud weight pressures to minimize potential well bore
damage. The program is also designed to obtain critical core information by
taking whole core samples from prospective oil bearing sands. Extensive
testing procedures are planned for both new wells.
    The Company will contract the services of Remedy Energy Services Inc.
from Calgary, Alberta to act as project consultants for the program and to
provide the Company's operations and drilling department with additional
expertise and support services as may be required.
    The Company has also contracted Foothills Diamond Coring Inc. of Calgary,
Alberta to provide whole coring services. Core Lab of Houston will provide
core recovery and analysis services.
    Management will update shareholders in the coming weeks regarding any
additional developments prior to the commencement of the program.


    This press release contains certain forward-looking statements. While
these forward-looking statements represent our best current judgment, they are
subject to a variety of risks and uncertainties that are beyond the Company's
ability to control or predict and which could cause actual events or results
to differ materially from those anticipated in such forward-looking
statements. Accordingly, readers should not place undue reliance on
forward-looking statements.


For further information:

For further information: about Norwood Resources Ltd. (NRS) contact:
Raymond Cahill, President & CEO, E-Mail:, Telephone:
(604) 642-6566

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