Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd., announced today that the Company has selected two initial well locations to commence its drilling program in Preeceville, Saskatchewan, where it previously announced the discovery of numerous oil seeps. Furthermore, Mr. Benson also announced that Nordic will commence a new seismic program in the area as soon as possible, and will also engage Petro-Find Geochem Ltd. ("Petro-Find"), the company hired by Nordic to undertake the initial hydrocarbon soil gas surveys in its two most northerly townships in Preeceville, and who made the discoveries of the oil seeps, to undertake additional reconnaissance soil gas surveys to assess the magnitude and potential of the findings.
These initiatives stem from meetings conducted last week by Mr. Benson with Nordic's geologist and geophysicist and, Paul Lafleur, P.Eng., President of Petro-Find. It was at this time Mr. Lafleur also presented his full Report on the geochemical soil gas surveys comprising 453 sample locations conducted in Township 40 Ranges 4W2 and 5W2, and 22 sample locations in an area surrounding the two adjacent wells in Township 39 Range 5W2. A summary of Mr. Lafleur's Report on both Townships accompanies this News Release.
"One of the preliminary locations that we have identified for drilling was selected based on the Petro-Find Geochem Report, while the other location was chosen based on a combination of our own previously secured seismic data and the Petro-Find Geochem Report," Mr. Benson stated. "We will begin as soon as possible with the required environmental studies of both areas, following which we will apply for the necessary well licenses. It is estimated that this should take between four to six weeks to complete.
"Concurrently, we will also be undertaking additional seismic work in the area where the oil seeps were discovered, and will also have Mr. Lafleur and his people working on reconnaissance soil gas surveys," he added.
Commenting on his Company's Report, Mr. Lafleur stated that the results were some of the highest readings he had ever seen: "In the course of the survey some 34 oil seepage locations were found of which most were coincident with the soil gas anomalies. In Petro-Find's view many, if not all of the high-grade oil anomalies, especially those that are coincident with major oil seeps, warrant further exploration by drilling.
"The surface anomalies suggest both stratigraphic and structural oil traps. Many of the large anomalies are in a linear pattern suggesting fault control. However, most of the anomalies have round or oval shapes and sharply defined borders suggesting they are surface expressions of oil reservoirs associated with collapse structures," he added.
Nordic anticipates commencing drilling the two new wells before the end of the first quarter 2008.
The first priority is to conduct a high density soil gas survey in a three-mile wide swath from Township 40 south to the Warner well in Section 14 of Township 39, a distance of about four miles. A winter program would extend south the known anomalies in Township 40 and define the oil anomaly and fairways discovered around the twinned wells. It also could provide the answer to why the two Warner wells were dry and what is the probable source of the gas produced from the 1936 well over a period of many years.
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