WINNIPEG, MB. (AUGUST 29, 2013) -- Nordic Oil and Gas Ltd. (TSXV: NOG), today announced the Company's financial results from operations for its second quarter and six months ended June 30, 2013. All amounts referenced herein are in Canadian dollars.
Revenue from oil and natural gas sales (including liquids and transport revenue) during the second quarter of 2013 totaled $90,063. Although up from the Q1 2013 total of $70,268, this year's second quarter total is down from the $205,552 reported during the second quarter of 2012.
On a year-to-date basis, production revenue for the six months ended June 30, 2013 totaled $160,331, as opposed to $522,923 for the same period in 2012.
The primary reason for the decrease in revenue for the quarter and the year to date is the fact that production from the Company's 11-13 well has been negligible as a result of damage to the formation caused by the regulators when they began the abandonment of the well.
"This well was the focus of the settlement that was reached with a large Canadian company and the fact that the formation has been damaged has resulted in a significant loss of anticipated revenue for us," Mr. Benson stated. "The Company is currently weighing its legal alternatives in regard to this matter."
Nordic had anticipated production from this well of a minimum of 500 MCF/day, which would have resulted in additional gross revenue of $135,000 for the quarter. When testing after the well was drilled, indications suggested that the well had the capability of producing as much as 1,000 MCF/day of gas.
Total assets, including cash, short-term investments, accounts receivable, property and equipment and other assets (deposits), for the period ended June 30, 2013 were $10,666,028, down slightly from the December 31, 2012 total of $10,750,594. The primary reason for the marginal decrease in assets was the decrease in pre-paid expenses and deposits to $29,821 as opposed to $94,611 in 2012.
The net comprehensive loss for the three months ended June 30, 2013 before income taxes was ($194,346), compared to a loss of ($275,835) recorded during the same period a year ago. When applying deferred taxes, the second quarter loss was ($152,134), as opposed to ($225,755) for the second quarter of 2012.
Year-to-date, the net comprehensive loss before taxes was ($385,684) an improvement of approximately $30,000 over the net loss of ($417,160) for the first six months of 2012.When applying deferred taxes, the year to date loss for 2013 was ($293,850), an improvement of approximately $70,000 over the net loss of ($363,602) for the first half of 2012.
The improvement in the Q2 2013 loss and the year-to-date loss can be attributed to substantial reductions in the Company's production and operating expenses
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.
This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploration and drilling success, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Corporation's management on the date the statements are made. The Corporation undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
* The term BOEs may be misleading, particularly if used in isolation. A BOES 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.
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.
For additional information, contact:
Nordic Oil and Gas Ltd.
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