WINNIPEG, Manitoba (September 10, 2013) -- Donald Benson, President of Nordic Oil and Gas Ltd. ("the Company" or Nordic"), is pleased to provide further information and detail regarding the Company's new Boyne Lake project - see previous News Release dated August 7, 2013 - that involves production from the Grand Rapids Formation.
"Of particular interest," he said, "are two articles in the September 2013 edition of Oilweek Magazine that speak very favourably about the Grand Rapids formation. These articles lend very strong credence to our belief in the potential of our Boyne Lake property."
The first is an article pertaining to Imperial Oil Limited's Cold Lake, Alberta project, "which includes plans to tap into the shallower Grand Rapids Formation, with several 35,000 barrel-per-day phase over the next few years." An Imperial Oil spokesperson had this to say about the project: "Eventual production from the Grand Rapids could be significant and would represent an amplification of production from the existing leases."
The second article in Oilweek refers to a project in the Grand Rapids Formation by Laricina Energy, located about 130 kilometres southwest of Fort McMurray, and close to Nordic's Boyne Lake property. Laricina President Glen Schmidt is quoted in the article as saying: "We like the Grand Rapids because of its character as a shore-based sand."
The article went on to say that, "Reserves at Laricina's Grand Rapids Formation leases are reported at 389 million barrels of probable and 934 million barrels of best estimate contingent resources. Their Grand Rapids target is a regional marine deposit averaging 225 metres deep. It's unique in that the sand is clean, with homogeneous and continuous pay zone 10-25 metres thick."
Nordic's Boyne Lake project lands are located in close proximity to Cold Lake. The lands are controlled through oil sands leases. 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 and is currently arranging for a service rig to test the existing well.
The private company that had previously drilled the well anticipated 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 discovered 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 for natural gas.
The Company did not have the rights to produce the oils sands heavy oil and therefore produced only gas. However, over time, they did secure the oil sands leases for their property, including the well that Nordic has now farmed into.
"The main objective now," said Mr. Benson, "is to drill out the plug and test, complete and produce the well for heavy oil."
In addition to re-entering the well, Nordic plans to source substantial financing to complete the drilling of a number of vertical and/or horizontal wells for a complete development of the oil sands play.
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.
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.
E-mail: [email protected]
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