WINNIPEG, Manitoba (September 12, 2013) - Donald Benson, President of Nordic Oil and Gas Ltd. ("the Company" or Nordic"), today announced that the Company has entered into a farm-in agreement on one section of Petroleum and Natural Gas leases in the area known as Noel, B.C. The property is located in northeastern British Columbia adjacent to the Alberta border in block 093-P-01.
"We are very bullish on this opportunity and we feel this will open up our ability to significantly increase our overall production totals," Mr. Benson stated. "We have identified two prospective Cardium zones from the logs from the existing well, and we will be investigating the viability of either re-completing the existing well or alternatively drilling a twinned well on the existing surface lease."
The main attraction of this property and reason to enter into the Farm-in Agreement, said Mr. Benson, "was that the location is already tied-in to the pipeline and therefore the cost of infrastructure is eliminated, and that there are two identified shallow Cardium zones, which occur at a depth of 750 to 950 meters subsurface. There is also a Cadotte zone that is very prolific."
The agreement calls for Nordic to test and complete the existing well prior to December 31, 2013 or drill a new well before February 28, 2014. A total of four wells are planned for this project, and the cost of wells two, three and four will be shared on a 50-50 basis with the farm-out partners.
Nordic will become the operator of the well and lands upon completing the farm-in obligation. The ownership of the initial well, or the new well if it is drilled, and the four units comprising the one section shall be shared 50% by Nordic and 50% by the vendor. In addition, production from the initial well will also be shared, 80% by Nordic and 20% by the vendor until payout.
"This very exciting project provides four spacing units enabling Nordic to drill and produce four wells with estimated production of 200 BOEs per well," Mr. Benson noted.
In a Prospect Synopsis Report prepared by a leading petroleum engineering company, it is estimated that the well will produce between 40 and 90 barrels of condensate in conjunction with every 1 million cubic feet of gas produced.
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 psa)
** 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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SOURCE: Nordic Oil and Gas Ltd.
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