In June 2007, the Company acquired approximately 1,080 acres in the Lloydminster region of east-central Alberta, most of which are located within the Lloydminster Sparky “GP”, “C”, “D” and “McLaren W” pool, at a depth of approximately 675 metres. The Sparky “G” pool has produced an aggregate of 7,268,500 BBLs and the production per well has ranged from 800 BBLs to 422,000 BBLs, with an average of 93,200 BBLs.
At present, Nordic holds a 50% interest in the hydrocarbon interests, together with a 50% participating interest in all well tangible and miscellaneous interests associated with such hydrocarbon interests in three heavy oils wells at Lloydminster – 100/05-20-049-01W4M; 102/12-22-049-01W4M; and 100/16-22-049-01W4M. It also has a 100% interest in interest in natural gas rights on 1 section of land encompassing 100% owned gas well currently on production @ 65 BOEs/day.
In addition, Nordic also has the option to acquire another heavy oil well at Lloydminster should it so desire.
In April 2011, the Company acquired a 100% interest in the natural gas rights to a section of land known as 04-50-3-W4M. This included a fully equipped standing well bore already tied-in to a nearby pipeline system.
The new gas well located at 9-4-50-3 W4 was placed on production in mid-July last year and is currently producing at the rate of approximately 65 BOES/day.
the Company has completed the permitting for 6.5 kilometres of 2-D seismic over the west half of the section of land in Lloydminster it acquired in April of this year. When Nordic acquired, from an arm’s length vendor, a 100% interest in the natural gas rights to a section of land in Lloydminster, Alberta known as 04-50-3-W4, the Company also obtained a seismic option for the oil rights to this particular section.
The two lines of seismic will be tied-in to an existing well in the adjoining section to the north of us, and to an existing well in an adjoining section to the south. The information that we obtain through the seismic process and subsequent interpretation, will tell us the best possible location for a new heavy oil well.
The current spacing allows Nordic to drill up to four new wells on this land, which is approximately 7 miles west of Nordic’s existing production in Lloydminster.