Nordic Oil closes $1.02-million first tranche
2008-02-22 17:32 ET - News Release
Shares issued 34,863,992
NOG Close 2008-02-21 C$ 0.49
Mr. Donald Benson reports
NORDIC OIL AND GAS LTD. ANNOUNCES INITIAL CLOSING OF PRIVATE PLACEMENT OFFERING
Nordic Oil and Gas Ltd. has completed the first closing of its previously announced private placement offering of flow-through units. The corporation issued 2,416,094 flow-through units at a price of 42.5 cents per unit for gross proceeds of $1,026,840 to various subscribers. Each unit consisted of one Class A common share of the corporation issued as a flow-through share within the meaning of the Income Tax Act (Canada) and one-half of one Class A common share purchase warrant. Each whole warrant entitles the holder thereof to purchase one regular Class A common share of the corporation at a price of 65 cents for a period of two years from the date of issuance. The flow-through shares and warrants will be restricted from transfer for a period of four months and a day from the date hereof in accordance with applicable securities laws and the policies of the TSX Venture Exchange.
Certain finders assisted the corporation by introducing potential subscribers for the offering and each finder received fees equal to 6 per cent of the purchase price of the units sold to subscribers for the offering introduced by such finder, as well as warrants equal to 8 per cent of the number of units sold to subscribers for the offering introduced by such finder. Each finder's warrant entitles the holder thereof to purchase one regular Class A common share of the corporation at a price of 60 cents for a period of 24 months from the date of issuance.
The closing of the offering is subject to the final approval of the TSX Venture Exchange. A second closing is expected to take place in early March, 2008.
In other news, chairman and chief executive officer, Donald Benson, also noted today that a recent article in the Regina Leader-Post stated the surge of drilling activity in the Preeceville, Sask., area, is due largely to the work that Nordic Oil and Gas has been undertaking in the region. "As a result of our exploration work, there are now many companies exploring in the area," Mr. Benson said.
Ed Dancsok, director of the geology and petroleum lands branch of Saskatchewan Energy and Resources, is quoted in the article as saying, "The Preeceville area has seen about 50 wells drilled in the last three or four years." He went on to say, "Nordic's exploratory work has led to an influx of about five to 10 companies into the Preeceville area, including PanTerra Resource Corp., Vermillion Energy Trust, Propel Energy Corp. and even Hunt Oil Canada, the subsidiary of giant Hunt Oil of Dallas, Tex., which has drilled a half dozen wells."
"We're hopefully going to make a huge discovery here," Mr. Benson said. "We believe it's going to be light crude. We have acquired a tremendous amount of land in the region, consisting of about 112,000 acres and we expect this will be a very substantial new area for Saskatchewan and we'll be right in the heart of it."
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