Growth Through Successful Exploration and Drilling Strategies
June 1, 2009 NEWS RELEASE
NORDIC OIL AND GAS ACQUIRES COAL LEASES IN DRUMHELLER, ALBERTA
WINNIPEG, MB. (June 1, 2009) – Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. (“Nordic” or the “Company”), (TSXV: NOG) today announced that the Company, in conjunction with its joint venture partner, Western Warner Oils Ltd. (“Western Warner”) has acquired 3,856 hectares (9,528 acres) of coal leases located at Drumheller, Alberta. An independent consulting company has determined that the leases contain approximately 54,000,000 recoverable tonnes of coal.
“Preliminary evaluation of the mining potential of this property conducted by Norwest Resource Consulting Ltd. historically concluded the total calculated in place coal was 95,951,031 tonnes with 53,905,623 tonnes potentially recoverable,” Mr. Benson stated. “As we have just acquired these leases, we have not as yet had a qualified person do sufficient work to classify the historical estimates as current mineral resources and therefore the historical estimates should not be relied upon.”
The project was introduced to Nordic by Western Warner, which controlled the leases for approximately 20 years. During that time, Western Warner undertook extensive exploration initiatives, which were conducted by HudBay Coal Company, who had farmed in to the project. This included drilling, logging and coring of 160 holes. HudBay was subsequently taken over by Dome Petroleum, however the leases were in turn sold to Trans Alta. In 1986, Trans Alta paid a penalty and returned the leases to Western Warner.
Australia’s Macquarie Bank stated on April 27, 2009 that it was forecasting an average market price for world thermal coal of $60/ton, which is down sharply from the $121 average price in 2008.
‘This represents a very exciting new opportunity for the Company, and we look forward to determining how best to develop these resources,” Mr. Benson added.
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.
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 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 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: dbenson57@shaw.ca E-mail: donbain1@mts.net
