Growth Through Successful Exploration and Drilling Strategies
September 18 , 2008 NEWS RELEASE
Nordic Places Two Additional Wells on Production at Lloydminster; Company Now Has 12 Wells on Production in Alberta
For Immediate Release
WINNIPEG, MB. (September 18, 2008) - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. (“Nordic” or, the “Company”), today announced that the Company has brought two new wells on production at Lloydminster, Alberta, bringing the total to six now on production in the region. Average production last week for the six wells totalled 180 barrels of oil per day (BOPD), or 30 BOPD per well, in line with the Company’s projections given earlier this year.
Overall, the Company now has 12 wells on production in Alberta, including five natural gas wells and one Coal Bed Methane (CBM) well in Joffre. Production levels now stand at approximately 260 BOE/D*, a 225% increase over the 80 BOE/D reported at the end of the second quarter.
This production number is expected to rise even further during the fourth quarter, as the Company is currently surveying three new well locations at Lloydminster, with drilling expected to commence early in Q4. It is anticipated that each of these wells will also produce in the area of 30 BOPD
Furthermore, at Joffre, Alberta, the Company’s new Belly River well has been drilled, cased and logged and testing is now underway. As stated previously, this well should come on production in the fourth quarter. Also at Joffre, the Company is in the process of obtaining another surface lease and expects to drill two new wells during the fourth quarter.
“With three more new wells expected in Lloydminster and another two in Joffre, along with the recently drilled well in Joffre, we should have 18 wells on production in the fourth quarter, resulting in continued increases in both our production volumes and revenue totals,” Mr. Benson stated.
At Preeceville, Saskatchewan, the re-entry of the 14-14 well has been completed. The well has been drilled and cased and the open hole logs are now being interpreted.
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 is 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.
*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.
The TSX Venture Exchange has not reviewed nor accepts responsibility for the adequacy or accuracy of the contents of this News Release.
This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploration and drilling success, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
For additional information, contact:
Donald Benson
Chairman & CEO
Nordic Oil & Gas Ltd.
Tel: 204-956-5042
Fax: 204-897-7154
E-mail: dbenson57@shaw.cawww.nordicoilandgas.com
