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July 2, 2009 NEWS RELEASE
NORDIC OIL AND GAS TO SUBMIT APPLICATION FOR UNDERGROUND COAL GASIFICATION PROJECT
Pilot Project at Drumheller Would be Only Second Ever in Canada
WINNIPEG, MB. (July 2, 2009) – Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. (“Nordic” or the “Company”), today announced that the Company, along with its joint venture partner, Western Warner Oils Ltd. (“Western Warner”), are examining the possibility of using Underground Coal Gasification (“UCG”) as a means to convert the coal into product gas at its recently acquired Drumheller, Alberta property.
Nordic is currently making preparations to submit an application to the Province of Alberta for a UCG pilot project, only the second such project ever undertaken in Canada, and one of just a few in North America. The Company announced on June 1, 2009 that it had acquired 3,856 hectares (9,528 acres) of coal leases located at Drumheller, Alberta and that historical data had determined that the leases contained approximately 54,000,000 recoverable tonnes of coal (1).
In March of this year, the Alberta government, through the Alberta Energy Research Institute, announced that it was providing $8.83 million for a $30-million deep coal gasification project being undertaken by a Calgary-based company. It is expected the project will demonstrate the ability to produce environmentally clean synthetic gas from Alberta’s vast, deep, coal resources, with the future potential of utilizing the coal seams for carbon capture and storage.
“The basic UCG process involves drilling two wells into the coal – one for injection of the oxidants (water/air or water/oxygen mixtures), and another some distance away to bring the product gas to the surface.” said Mr. Benson. “The technique offers an alternative to conventional coal mining methods.”
Industry experts are predicting that there is going to be a resurgence and re-branding of coal-powered fuel in this country. Toward this end, new forms of extraction are being introduced and studied, including underground coal gasification, which boasts dramatic reductions in emissions, low energy costs and relatively minor surface footprints when compared to the surface and mining–based coal power plants commonly used throughout North America.
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.
(1) “A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.”
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. Lloydminster property, 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 Lloydminster property 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.
For additional information, contact:
Donald Benson Don Bain
Chairman & CEO Corporate Secretary
Nordic Oil and Gas Ltd. Nordic Oil and Gas Ltd.
Tel. 204-956-5042 Tel. 204-943-1810
Fax. 204-897-7154 Fax. 204-943-1829
E-mail: email@example.com E-mail: firstname.lastname@example.org