NORDIC OIL AND GAS PROVIDES SUMMARY OF ACTIVITIES IN 2005
WINNIPEG, MB. January 4, 2006 – Donald Benson, Chairman and CEO of Nordic Oil and Gas Ltd., is pleased to provide an overview of some of the Company’s key activities and initiatives from 2005.
“The past year has been an exciting one for Nordic Oil and Gas,” he said. “I feel we accomplished a great deal during the year and we have seen the Company move forward in many aspects.
“From a financial standpoint, the company enters the New Year with its strongest balance sheet ever. We concluded two successful financings during the past year and in both cases, the money was raised at values above the market price for the shares. This has been the case with all of our financings since the Initial Public Offering in 2002,” he stated.
“In addition, we feel that an upward movement is developing with regard to the Company’s stock, and was reflected in the value of the warrants that were issued on both financings - $0.60 and $0.80 respectively.
“From a production standpoint, two new wells were placed on production during 2005, bringing to five the total number of wells Nordic Oil and Gas now has on stream,” he added.
Following are some of the key highlights from 2005:
In February, Nordic reached an agreement with Trident Exploration Corp. (an industry leader in the field of Coal Bed Methane exploration and development) for the pooling of each company's interests in section 20-38-24 W4 in Joffre with the intent to drill a Coal Bed Methane well the Spring. This well subsequently was drilled, perforated and put on production at year-end.
Later that same month, Nordic Oil and Gas and its JV partner, Western Warner Oils, signed an agreement with Indian Oil & Gas Canada and the Cote First Nation of Kamsack, Saskatchewan to develop oil and gas reserves on 14,355 gross acres of Cote land north of Kamsack.
March saw the successful completion of 37 kilometres of 2-D seismic data in Preeceville, and preliminary analysis of the data confirmed the structural trends that had previously been mapped in the southern four townships of Nordic’s six-township property are seen to extend into the two most recently acquired townships.
During the summer, AJM Petroleum Consultants, a leading reservoir engineering company, was hired to evaluate the potential of Nordic’s Coal Bed Methane (CBM) interests in Joffre. The report subsequently suggested that Nordic’s possible recoverable CBM reserves on its Joffre property exceeds 10 Billion Cubic Feet (BCF)) – Nordic expects to obtain a new report in the coming weeks reflecting its proven, probable and possible CBM reserves on its Joffre property.
In September, the Company commenced shooting a total of four lines of seismic over a 28.2 kilometre area on its Cote First Nation land. The shooting of the seismic was completed in early October and the data is currently being processed and analyzed. The results are expected in the coming weeks. The seismic data will help Nordic identify any deeper prospective formations.
Also in September, Desoto Resources Ltd., another of Nordic’s Joint Venture Partners, applied for down spacing on three sections of land in Joffre – 18-38-24 W4, 20-38-24 W4 and 24-38-25 W4. The down spacing will allow the companies to drill four wells per pool, per section in the Edmonton and Belly River zones. When the Holding Application is approved, Nordic will have access to 20 new drilling opportunities on these lands.
In early October, the Company licensed its 14-14-39-5 W2 well in Preeceville, and began preparing to have the well drilled in November. The well was spud at the end of November and was drilled and cased at a depth of 400 metres. The open hole logs are currently being analyzed and cased hole logs were completed during the last week of the year. This well may be re-entered in the Spring and drilled to 1,200 metres.
In November, Nordic signed an agreement with a major Calgary-based exploration company specializing in Coal Bed Methane exploration and development, to farm-out certain interests on two sections of land in the Joffre area. The agreement calls for two new CBM wells to be drilled on sections 18-38-24 W4 and 24-38-25 W4, at no cost to Nordic. It is anticipated that the first well will be drilled later this month.
In early December, the Company’s 102-3-24-38-25 W4 Belly River well at Joffre, which was drilled during the fourth quarter of 2004, was tied-in and placed on production.
In mid-December, the Company announced the successful closing of the first of two private placement offerings. This Offering consisted of the sale of 3,000,000 units at a price of $0.40 per Unit for aggregate gross proceeds to the Corporation of $1,200,000.
Later the same month, the Company successfully closed a second Private Placement Offering of 424,175 units of the Corporation at a price of $0.40 per Unit for gross proceeds of $169,670.
“As we move into the New Year, we do so with much optimism and excitement,” Mr. Benson stated. “We will start the year with a strong and extensive drilling program in Joffre. The two new financings, along with cash from existing operations will allow us to move forward quickly with our plan to drill up to 15 new wells in the region.”
Nordic Oil and Gas Ltd. is a junior oil and gas company listed on the
TSX Venture Exchange. It trades under the symbol NOG.
For additional information, contact:
Donald Benson
Chairman & CEO Nordic Oil & Gas Ltd.
Tel: 204-956-5042 Fax: 204-897-7154 E-mail: dbenson57@shaw.ca
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