Nordic Drilling Update
15:22 EDT Wednesday, July 16, 2008
WINNIPEG, July 16 /CNW/ - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. ("Nordic" or, the "Company"), today announced that that the perforating and testing have been completed at the Company's second well at Preeceville, Saskatchewan and that the well does not have any production capabilities. However, the top perforations are being left open for possible re-entry for shale gas. The service rig is now being deployed to the Company's 14-14-39-5 W2 well that was drilled in 2005 and was cased at a depth of 400 metres.
"While we are disappointed that the second well in Preeceville does not have any production capabilities, we are not wavering in our belief that this is an oil prone region," Mr. Benson stated. "Samples taken from this latest well indicated a presence of both asphaltines and wax, two components commonly associated with oil production.
"When coupled with the fact that in November we announced evidence of oil seeps was discovered at 34 locations with at least four major areas, including one extending 400 feet along the Pewei River, we see no reason why we should not remain bullish on the region," he added.
It is for this reason the Company plans to re-enter its 14-14 well. "This location was identified back in 2005 based upon thorough analysis of the seismic data. We tested initially for shale gas, which is why the well was cased at 400 metres. However, we feel that if we drill down to the basement at around 1,100 metres, the potential is there for a discovery." The perforations are being cemented off, and a well license is being applied for.
Mr. Benson also pointed out that exploration drilling does not often produce successful results from the first few wells: "Witness the Turner Valley, Alberta discovery" he said. "They drilled many wells before they had any real success. As such, it very well could take us a few more wells before we are successful."
Meanwhile, at Lloydminster, the drilling of the third new heavy oil has been completed. "We will be finalizing these wells and putting them on production as soon as possible," Mr. Benson said.
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.
The TSX Venture Exchange has not reviewed nor 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.
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For further information: Donald Benson, Chairman & CEO, Nordic Oil & Gas Ltd., Tel: (204) 956-5042, Fax: (204) 897-7154, E-mail: dbenson57@shaw.ca, www.nordicoilandgas.com
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