WINNIPEG, Manitoba (March 4, 2013) -- Donald Benson, President of Nordic Oil and Gas Ltd. ("the Company" or Nordic"), today announced a new non-brokered private placement offering (the "Offering") of up to 16,666,667 units ("Units") at a price of $0.03 per Unit for gross proceeds of up to $500,000. Each Unit of the Offering will consist of one Class A common share of the Company issued as a "flow-through share" within the meaning of the Income Tax Act (Canada), and one Class A common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to purchase one regular Class A common share of the Company at a price of $0.10 per share for a period of 24 months from the date of issuance.
The company is relying on the financial hardship relief measures using a price of $0.03 per unit.
The proceeds from this Offering will be used to pay surface lease, survey, road maintenance and landman costs associated with restarting of gas wells at Joffre as follows:
-Perforate and Tie in of well 11-13-38-25 W4 and re-activate Joffre gas wells and compressor in March 2013 at a cost of $120,00
-Costs associated with general operations of the Company at $180,000
-Drill a new heavy oil well at Lloydminster for $200,000
The Private Placement has been approved by the Corporation's board of directors, through the completion and signing of a Resolution of the Directors Document. It is not known at this time how many related parties may participate in this Offering, however the Company has ensured the TSX Venture Exchange that no more than 25% of the Private Placement offering amount will be subscribed for by persons that are Related Parties of the Issuer.
The securities issued pursuant to the Offering are subject to a four-month hold period from the date of issuance. The Company anticipates multiple closings of the Offering in the coming weeks.
Certain finders are expected to assist the Company by introducing potential subscriber(s) to the Offering and, subject to compliance with applicable legislation, will be entitled to receive fees equal to up to 10% of the purchase price of the Units sold pursuant to the Offering, as well as compensation warrants (the "Finder's Warrants") equal to up to 10% of the number of Units sold pursuant to the Offering. Each whole Finder's Warrant shall entitle the holder thereof to purchase one regular Class A common share of the Company at a price of $0.10 for a period of 24 months from the date of issuance.
The closing of the Offering is subject to the final approval of the TSX Venture Exchange.
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.
For additional information, contact:
Don Bain, Corporate Secretary.
Nordic Oil and Gas Ltd.
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