Norwood Resources Ltd. - Enhanced Commerciality Prospects at San Bartolo & Las Mesas

    Trading Symbol: NRS

    VANCOUVER, Sept. 27 /CNW/ - Norwood Resources Ltd. (the "Company") is
pleased to update shareholders related to the Company's activities.


    The Company has contracted the reservoir engineering services of Object
Reservoir (, a Houston based reservoir engineering
consulting group, to independently evaluate the well logs and drill stem
testing ("DST") results from the Company's first two wells in Nicaragua, San
Bartolo and Las Mesas.
    The results of their analysis suggest that several potential reservoir
zones were significantly damaged during drilling and testing and many of the
test results were inconclusive. Significant potential may exist in zones
previously thought to be either water bearing or tight. The gas recovered from
the tests and during drilling appears to have come out of solution in the pipe
and this consulting group strongly believe the reservoir contains
under-saturated oil, which should be confirmed from lab analysis. Their report
contains the following observations:

    At San Bartolo:

    -   Intervals 5 (6764' - 6835') and 7 (6210' - 6277') are capable of
        commercial production rates. These rates could approach the initial
        flow rates of the DSTs (570 BOPD and 365 BOPD respectively) with
        proper clean up.

    -   It is not possible to estimate the size of the reservoir(s) from the
        DSTs because of the limited flow periods.

    -   Several of the tested intervals were damaged by drilling or
        completing overbalanced with respect to the formation pressure. The
        DSTs did not measure reservoir conditions and these intervals would
        require some stimulation to determine their real productivity.
        Intervals 1 (8610'-8638') and 6 (6380'-6584') are included in this

    -   Those intervals that were stimulated with an acid frac did
        demonstrate significant increase in productivity but some damage
        could still remain. Recoveries from these intervals included spent
        acid, gel, completion fluid, gas cut oil and small amounts of oil but
        no formation fluid. These intervals need to be flowed for longer
        periods to determine their true production rates. These are intervals
        4 (7014'-7244'), 8 (6135'-6185'), 9 (6066'-6110'), 10 (5975'-6010')
        and 11 (5790'-5885').

    -   The DSTs conducted on damaged intervals caused several zones in the
        well to be abandoned without testing and considered unproductive -
        which may not be the case.

    -   Successfully tested intervals appear to be normally pressured with
        under saturated oil and would require artificial lift production.
        However, the amount of low-pressure gas in the oil could facilitate
        gas lift production as opposed to installing surface or submersible
        pumping units.

    -   This low-pressure gas in solution probably caused the appearance of
        gas flows during the drilling and the unnecessary increases in
        drilling fluid weight, which contributed to the formation damage.

    -   Derivative shut in pressure plots suggest a radial composite system
        or a constant pressure system suggesting all reservoir pressures are
        maintained by a strong drive - possibly water.

    At Las Mesas:

    -   Interval 7 (3350'-3460') is the most promising although lack of
        stimulation prevents complete evaluation. Oil recoveries and a small
        amount of gas to surface during the test suggest that the interval
        could be stimulated to produce better than the initial flow rate
        (107 BOPD) although artificial lift is implied.

    -   Several deeper intervals showed signs of gas during the completion
        process but did not test any gas. Tool failures and or introduced
        completion fluid may have caused them to appear unproductive.
        Intervals 1 (8818'-8838'), 2 (8708'-8728'), 3 (7846'-8034'),
        4 (7054'-7090') warrant further investigation.

    -   Recoveries from DST 5 (4742'-4810') and 6 (3908' - 4186') are
        considered invalid because it is suspected that these fluids were
        from a failed squeeze perforations within the tested intervals.

    Recommendations for modifying drilling practices are contained in the
report, including single trip tubing-conveyed perforating ("TCP") / DST to
maintain under balance perforating, sample chambered DST tools, and the
possibility of air drilling. Avoiding formation damage is of paramount
importance because of the mineralogy (clay) content of the sands.
    In August 2007, The Company began the integration of well data from its
initial exploration wells in Nicaragua with seismic data to re-map other
potential structural closures. This exercise has confirmed the structural
closure at San Bartolo and additional up-dip potential at the Las Mesas well.
It also confirms that there are 8 to 10 structures in the surrounding area of
significant closure size (2 to 5 square miles) using only the productive
interval levels discovered at San Bartolo as the horizons of interest.
    Possible reserves will be estimated upon completion of the petrophysical
work being conducted by Fronterra Geosciences scheduled for completion later
this month. This work includes the XRD (Xray Diffraction) information provided
by Core Labs of Houston on the sidewall cores. Pay calculations will then be
modified taking into account actual mineralogy content from the wells.
    With this additional information, The Company will continue its
re-tooling efforts to re-engage its drilling program later this year. To
expedite this, the Company is pleased to announce that Mr. Douglas Howell has
joined the Company as its Drilling Operations Manager. Mr. Howell, through FJ
Brown and Associates of Houston, provided The Company with his drilling
engineering expertise during the Company's initial drilling campaign in
Nicaragua this past spring. Mr. Howell brings over 35 years of international
drilling experience. He is currently engaged in locating drilling and testing
equipment suitable for the continuation of The Company's exploration
evaluation program in Nicaragua. This retooling effort is key to The Company's
efforts to reduce the costs of exploration in Nicaragua and rigs in Houston,
Mississippi, Michigan and Oklahoma have already been assessed.

    South Texas - Bigfoot:

    During the past several months, the Company has purchased more seismic
data over the Company's Bigfoot prospect in South Texas. Reprocessing and
interpretation of the seismic data set shows refinement of the Cretaceous
targets, confirmation as possible reefs and a reinterpretation of both the
Queen City and Wilcox formations prospects in the area. The Company is
preparing the data for an independent valuation, which will include a
recommended work program, likely to include 3D seismic and drilling
recommendations. The Company is also evaluating various strategic alternatives
to develop Bigfoot and which will maximize shareholder value for this
important asset. Included in these alternatives is the creation of a new
company, which would be achieved by way of a plan of arrangement, to finance
and develop the Bigfoot prospect independently from the Company's assets in
Nicaragua. This evaluation should be completed within 60-90 days.

                             WE SEEK SAFE HARBOUR

    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, E-Mail:, Telephone: (604)

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890