Nordic Oil and Gas Announces Major Initiatives for Joffre
WINNIPEG, Manitoba - (December 16, 2011) – Donald Benson, Chairman and CEO of Nordic Oil and Gas Ltd. (the “Company” or “Nordic”), (TSXV: NOG), today provided the following update on the Company’s planned initiatives for the Joffre, Alberta property:
“As a result of the announcement made yesterday pertaining to the Joffre land leases – ‘Settlement Reached in Long Standing Litigation’ – we now are in position to bring two gas wells on production in the region: we will be putting on production our 11-13-38-25 W4 well that was drilled in 2007 but was prohibited from producing due to the litigation problems which we had. This well tested at just under one million cubic feet per day. We will also be putting on production our newly acquired 11-7-38-24 W4 well, which we will be re-completing in the Belly River and for Coal Bed Methane.
“In addition, we intend to drill a new well at 6-13-38-25 W4. Logs from an offset well indicate that this new well will would produce from the lower Basel Belly River. Plus, we will be identifying a new location for a Belly River / Coal Bed Methane well on section 7-38-24 W4.
“Furthermore, we will be selecting a location for the drilling of a well on section 5-38-24 W4 to test the Belly River and Coal Bed Methane. We had a previous test well that initially produced 750,000 cubic feet per day on this section.
“These three sections of land were considered by management and our consultants to be the best lands which we owned in Joffre back in 2002 when unforeseen problem arose, which hampered us in developing these great lands.”
“The putting on production of the11-13-38-25 W4 and 11-07-38-24W4 wells will give us sufficient volumes to put our natural gas compressor on production, thereby eliminating the need for outside operators,” he added. “This will improve our net backs considerably”.
As gas prices improve, Nordic intends to expand the drilling to as many as 8 wells per section. “We are currently completing mapping and we expect that this will drastically increase the reserves which we have in the area,” Mr. Benson added.
Mr. Benson also stated that while the Joffre lands have been an integral component of the Company since its inception, and will continue to be so in the future, “we are not ignoring the excellent opportunities we have at Preeceville/Endeavour, Saskatchewan, our Weyburn, Saskatchewan land in the Bakken oil formation, our recently acquired land near Virden, Manitoba, our ongoing initiatives at Lloydminster and the prospects of Underground Coal Gasification at Drumheller.”
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.
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.