WINNIPEG, Manitoba (August 7, 2013) -- Donald Benson, President of Nordic Oil and Gas Ltd. ("the Company" or Nordic"), today announced that the Company has entered into an agreement whereby it will farm-in to eight sections of land in the Boyne Lake area of northern Alberta as part of a heavy oil "cold production" play.
The subject lands are located in the Western Canadian Sedimentary basin about 85 miles northeast of Edmonton. The lands are owned through oil sands leases, but the primary recovery is expected to be heavy oil under cold production. Nordic anticipates production from the re-completion of an existing well in the Grand Rapids oil sands formation. The agreement calls for Nordic to test and complete the well prior to December 31, 2013.
Nordic will become the operator of the well and elected lands upon completing the farm-in obligation, and the ownership of the well, and four of the eight sections (to be elected on or before December 31, 2013) shall be shared 50% by Nordic and 50% by the vendor. In addition, production from the well will also be shared on a 50 - 50 basis by the two parties.
The company that owns the land had previously drilled the well anticipating gas in the Grand Rapids formation. Although no gas was found, the well was capped and after studying the logs it was decided to perforate the well and produce the up-hole Viking zone. When the well was re-entered the company reported over 200 metres of oil in the well bore. It was decided to plug the well below the Viking and proceed to perforate and produce the Viking.
"The main objective now," said Mr. Benson, "is to drill out the plug and test, complete and produce the well."
In addition to re-entering the well, Nordic's development plans also include drilling a number of vertical and/or horizontal wells for a complete development of the oil sands play. Nordic will pay the entire costs of the next well to be drilled, including completion and equipment on the earned lands and upon doing so, shall earn a 50% interest in the remaining four sections
In a Prospect Synopsis Report prepared by a leading petroleum engineering company, estimated prospective resources of 47 MSTB* have been assigned for the Grand Rapids interval for the discovery well. The Report also states that there is considerable "upside potential" with regard to the overall Boyne Lake property. The Report states that there are up to 33 wells possible, with total production rates of 3,100 BOEs/day** and total reserves of 2,600 MSTB.
"We are very pleased to be entering into this agreement and see this as an excellent opportunity to move the Company forward and enhance shareholder value," he added.
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.
*MSTB - Thousands of Stock Tank Barrels of oil (oil volume at 60F and 14.65 psia)
** BOEs - 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.
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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