Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. ("Nordic" or the "Corporation"), today announced that the Corporation's 11th well, which it believes to be the second to encounter gas in the Basal Belly River zone in Joffre, Alberta, Canada, has been perforated.
"We will run recorders into the well and following a two-day flow test we will then undertake a six-day build-up test, which in turn will be followed by a static gradient test," he stated. "From there, we anticipate undertaking further testing in the Belly River and Edmonton zones."
In other news, Mr. Benson also announced today that the Corporation has made an initial down payment on the lands to be acquired in Alberta, as per its News Release dated June 29, 2007, with the closing date set at September 14, 2007, subject to customary industry regulations and conditions.
The Corporation entered into an agreement to acquire approximately 8,000 acres of Petroleum & Natural Gas leases in the Peace River Arch and Lloydminster regions of Alberta. Nordic will acquire these assets for cash considerations of $200,000, plus 1.5 million Class A Common Shares of the Corporation at a price of $0.30 per share, for a total acquisition price of $650,000.
"As we stated in June these lands will provide Nordic with new core areas for the Corporation and will be a strategic fit for our current production and impending drilling activity at Joffre, Alberta," Mr. Benson said. "We are confident that these new lands will be a positive addition to our already strong holdings in Alberta."
In addition, the Corporation also announced its intention to undertake a private placement offering (the "Offering") of 1,000,000 units (the "Units") at a price of $0.20 per Unit for gross proceeds of $200,000. Each Unit will consist of one Class A common share of the Corporation issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) and one half of one Class A common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to purchase one regular Class A common share of the Corporation at a price of $0.30 for a period of 24 months from the date of issuance.
Certain finders are expected to assist the Corporation by introducing potential subscriber(s) for the Offering and, subject to compliance with applicable legislation, will be entitled to receive fees equal to 6% of the value of the Units sold pursuant to the Offering as well as warrants ("Finder's Warrants") equal to 8% of the number of Units sold pursuant to the Offering. Each Finder's Warrant shall entitle the holder thereof to purchase one regular Class A common share of the Corporation at a price of $0.30 for a period of 24 months from the date of issuance. All the terms of the Offering are subject to the 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 Company is listed on the TSX Venture Exchange and trades under the symbol NOG.
The TSX Venture Exchange has not reviewed nor accepts responsibility for the adequacy or accuracy of the contents of this News Release.
"We will run recorders into the well and following a two-day flow test we will then undertake a six-day build-up test, which in turn will be followed by a static gradient test," he stated. "From there, we anticipate undertaking further testing in the Belly River and Edmonton zones."
In other news, Mr. Benson also announced today that the Corporation has made an initial down payment on the lands to be acquired in Alberta, as per its News Release dated June 29, 2007, with the closing date set at September 14, 2007, subject to customary industry regulations and conditions.
The Corporation entered into an agreement to acquire approximately 8,000 acres of Petroleum & Natural Gas leases in the Peace River Arch and Lloydminster regions of Alberta. Nordic will acquire these assets for cash considerations of $200,000, plus 1.5 million Class A Common Shares of the Corporation at a price of $0.30 per share, for a total acquisition price of $650,000.
"As we stated in June these lands will provide Nordic with new core areas for the Corporation and will be a strategic fit for our current production and impending drilling activity at Joffre, Alberta," Mr. Benson said. "We are confident that these new lands will be a positive addition to our already strong holdings in Alberta."
In addition, the Corporation also announced its intention to undertake a private placement offering (the "Offering") of 1,000,000 units (the "Units") at a price of $0.20 per Unit for gross proceeds of $200,000. Each Unit will consist of one Class A common share of the Corporation issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) and one half of one Class A common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to purchase one regular Class A common share of the Corporation at a price of $0.30 for a period of 24 months from the date of issuance.
Certain finders are expected to assist the Corporation by introducing potential subscriber(s) for the Offering and, subject to compliance with applicable legislation, will be entitled to receive fees equal to 6% of the value of the Units sold pursuant to the Offering as well as warrants ("Finder's Warrants") equal to 8% of the number of Units sold pursuant to the Offering. Each Finder's Warrant shall entitle the holder thereof to purchase one regular Class A common share of the Corporation at a price of $0.30 for a period of 24 months from the date of issuance. All the terms of the Offering are subject to the 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 Company is listed on the TSX Venture Exchange and trades under the symbol NOG.
The TSX Venture Exchange has not reviewed nor accepts responsibility for the adequacy or accuracy of the contents of this News Release.
Via: CNW
