Nordic Oil and Gas, along with its Joint Venture partner, Western Warner Oils Ltd., has entered into a strategic development agreement with Hunt Oil Company ("Hunt") whereby Nordic has the opportunity to earn an interest in the Hunt-owned land in Preeceville, Saskatchewan. The ensuing exploration work on the lands will result in Hunt having the option to participate on a 50-50 go forward basis with Nordic, or allow Nordic to retain a 100% interest in the land with Hunt earning a Gross Overriding Royalty.
Hunt owns approximately 153,600 acres of land in Preeceville situated a few miles southeast of the Nordic lands.
"We are delighted to have the opportunity to work with a company like Hunt Oil in a region where we believe there is strong potential," Mr. Benson stated. "We see this as a positive agreement for both companies, and hope that it will lead to other opportunities with Hunt down the road."
Mr. Benson also stated that survey work has now commenced for a five-well drilling program on the Nordic land in Preeceville. "We believe that with new drilling technology available to us, we will be successful in unlocking the enormous reserves of natural gas that the Hunt consultants have confirmed is in the region." Drilling is expected to begin in September of this year.
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