After reading all the press reports on Nordic, I am convinced that this little jr company has made a discovery that would make even Jed Clampet do a jig.
This sure sounds like the real deal.We will know the answer by Monday.
Oil discovered near Preeceville - Winnipeg-based company 'tremendously excited'
June 12, 2008
Preeceville is the latest Saskatchewan community to be connected with crude after a junior oil and gas company announced Wednesday it has made a discovery in the area.
Nordic Oil and Gas Ltd. of Winnipeg, Man., discovered oil in two formations this week at its Preeceville site 350 kilometres east of Saskatoon. After searching in the area since 2001, it's more than gratifying to make the announcement, company chair and CEO Donald Benson said.
"Eleven years ago when I heard about this area, I was following a story about a well that was drilled in the 1930s. Around that time, a fellow told me, 'Look for oil and gas where there is oil and gas,' " Benson said. "We thought we picked the right land in the first place; now we know we did."
Now the company, which is engaged in the exploration and development of oil, natural gas and coal bed methane in Alberta and Saskatchewan, will begin testing to determine formation pressures and flow rates. The company, which Benson describes as "tremendously excited" about the find, will receive testing results within the week.
"Ten barrels of oil per day would be something substantial in that it proves that there's an oilfield; 100 or 1,000 barrels a day magnifies that dramatically. Just because this well had, say, 20 barrels of oil per day isn't to say that it is the best well that we will find in the field," he said.
One of the most interesting aspects of the discovery, said Benson, is that it's in an area of the province not known for oil and gas reserves. Roy Schneider, spokesperson for the Ministry of Energy and Resources, agrees.
"It's not considered oil country, really, although it's a part of the province that's long been known to have some potential," Schneider said. "I think it tells you that possibly this province has more potential than we realize in terms of better defining what the resource base is."
The province would be pleased to see an addition to its overall oil supply, he said, explaining the ministry will receive a report on the discovery from Nordic within the next 20 days. Schneider said the province will be following the company's progress with great interest.
"It's not an announcement of a new oil reserve, it's not an announcement of a commercially viable oil pool, what it is is an announcement of some very promising results from an area of the province that we don't normally associate with oil production," he said.
If the discovery leads to production, the entire area will benefit, said Garth Harris, mayor of Preeceville, which has a population of 1,050. While challenges come hand-in-hand with economic growth, Harris said the region is enthused about the potential of oil in the area.
"With the oil stuff, it's exciting when you see the guys coming through town and when they're downtown on coffee row talking about stuff. So there's a little bit of excitement and enthusiasm," he said.
After finding oil at its site near Preeceville, Nordic, which has drilled four wells in the area, has big ideas for its property, Benson said. When testing comes back on production capabilities, Nordic hopes to advance its project as soon as possible.
"We definitely have plans to try and define the reservoir and produce oil," he said.
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