"When added to our four Belly River wells, this new CBM well brings to five the total number of wells Nordic Oil and Gas now has on production in the Joffre area," stated Nordic's Chairman and CEO, Mr. Benson. "The tie-in of this well now adds to our proven and probable reserves on our Joffre land, and will have a positive impact on the Company's revenue, giving us a solid foundation for a strong opening quarter in 2006."
This represents the first of several Horseshoe Canyon CBM wells for Nordic Oil and Gas and its Joint Venture partner in the Joffre region. Nordic Oil and Gas recently signed an Agreement to farm-out certain interests on two sections of land in the Joffre area. The Agreement calls for two new Coal Bed Methane (CBM) wells to be drilled on sections 18-38-24 W4 and 24-38-25 W4, with the first well to be drilled no later than January 2006.
"These two wells will be paid for 100% by our Joint Venture partner and we will own a 50% interest in each well," Mr. Benson said. "Subsequent well costs will be shared on a 50-50 basis between the two companies.
"We plan on drilling up to 15 wells on our Joffre property during 2006," he added.
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