These lands will provide Nordic with new core areas for the Corporation and will be a strategic fit for its current production and impending drilling activity at Joffre, Alberta. The lands are being acquired from companies that are active in assembling Petroleum & Natural Gas leases for sale to junior and start-up oil and gas companies. The lands have been evaluated by independent geological and geophysical consultants and based on this evaluation, and that of management, the Corporation is very excited about the potential of these new acquisitions.
"The success of other companies that have dealt with the vendors gives us considerable confidence that these lands will be a positive addition to our already strong land holdings in Alberta," said Mr. Benson, adding that this acquisition triples the Corporation's land position in the province.
Mr. Benson noted that the Corporation would be moving into the Lloydminster area as soon as possible, "where we are seeing heavy oil being produced at a depth of 600 meters." Nordic anticipates that each well will cost approximately $250,000 to drill and a further $150,000 to complete. "The play in the Peace River Arch will initially be that of Blue Sky gas at a depth of 525 meters," he added. "Both of these plays are in actively producing areas, not unlike where we are located in Joffre."
Nordic currently is in the marketplace with a non-brokered Private Placement Offering of up to 4,000,000 units (the "Units") at a price of $0.30 per Unit for aggregate gross proceeds of up to $1,200,000. Each Unit will consist of one Flow-Through Common Share, within the meaning of the Income Tax Act (Canada), plus one-half of a Share Purchase Warrant (the "Warrant") of the Corporation. Each full Warrant will entitle the holder to purchase one regular Class A Common Share of the Corporation at a price of $0.40 for a period of two years from the date of issuance. The Flow-Through Shares and the warrants underlying the Units will be subject to a 4-month hold period.
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