Growth Through Successful Exploration and Drilling Strategies
The Preeceville / Endeavour Property
The Preeceville region is, in the Company's view, an area of great promise and potential. The Company has an 80% interest in 31,999 gross acres of P&NG leases with rights to the basement.
Nordic entered into a strategic development agreement with Hunt Oil Company whereby Nordic has secured an interest in six townships of Hunt-owned land in Preeceville, Saskatchewan. The ensuing exploration work on the lands will result in Hunt having the option to participate on a 50-50 go forward basis with Nordic, or allow Nordic to retain a 100% interest in the land with Hunt earning a Gross Overriding Royalty.
In October 2007, the Company engaged the services of Petro-Find Geochem Ltd. to undertake hydrocarbon soil gas surveys in its most northerly permit in Townships 40, Ranges 4 and 5 W2 in Preeceville. During the course of sampling, the Consultant discovered oil seeps. Laboratory analysis on the oil seeps confirmed the presence of oil in the samples received. All together, evidence of 34 seeps was been found on the property, of which three were very extensive.
In the early summer of 2008, the Company drilled its initial two wells in Preeceville in search of oil. The first well showed some indications of the presence of oil during the drilling - an oil film and droplets of oil in the drilling fluid coming over the shaker were found, and that some oil staining was seen on some samples that were taken. Furthermore, some samples had good porosity. However, due to the intersection of faults, the well deviated and the drilling tools became lodged in the hole and cannot be dislodged. As a result, the well was abandoned.
Drilling of the second well was completed and the Company discovered oil in two formations. The well reached the basement and the Company then drilled a further 15 metres of overhole to allow for production. Unfortunately, following the completion of the perforating and testing, it was determined that the well did not have any production capabilities.
When Nordic first began exploring this region, it was searching for what is known as the ‘Prairie Evaporate Salt Collapse Edge’. The Company now believes it has found the Salt Collapse Edge on its original holdings and these six townships contain a salt cap, which is acting as a trap for oil and/or gas. It also believes that with new drilling technology now available, the Company will be successful in unlocking the enormous reserves of natural gas that industry consultants have confirmed are in the region. A new test well will be drilled and will be utilizing specialized equipment on the drilling of the shallower portion of the well, thereby allowing the gas to flow. New 2-D seismic is being shot in Preeceville over the 6 new townships.
The Company is poised to return to Saskatchewan this fall to drill a new exploration well near Endeavour. New 2-D seismic in the region has been shot, processed and interpreted, and based upon the analysis of the recently completed seismic in the area, a location has been identified and Nordic pans to license and drill the well as soon as possible. The site is now being surveyed and the Company is in the midst of pricing the costs of services.
Interpretation of the new seismic indicated a strong anomaly in both the Red River and Winnipegosis. In 1958, Imperial Oil shot seismic in the area and subsequently drilled an exploration well at 10-25-35-4 W2. Although they missed the target, the well demonstrated there was oil migration in the Endeavour area, as oil was found in six separate formations. The new seismic shot by Nordic confirms the new location is on a structural high (which was not the case back in 1958) and that both a salt cap, which the Company feels acts as a seal, and reservoir are present at this new location.
INTERPRETATION
FORMER
10-25 WellPROPOSED
04-11 LocDrilled on Structure High
No
Yes
Salt Evaporite Present No Yes Reservoir Yes Yes
Preeceville Property Map
Oil Seep photos from Preeceville
Other Properties:
The Peace River Arch / Talbot Lake Property
