Nordic Oil & Gas Cites Higher Reserves, Up 25% in Alberta
Nordic Oil and Gas has received an updated Reserves and Engineering Report from an independent petroleum engineering company, which credits Nordic with a substantial increase in its Proved + Probable Reserves at Lloydminster, Alberta. This is largely due to the Company's new 16-6-50-2 W4 heavy oil well, which has been on production since the third week of September. The well has been producing from the General Petroleum zone, the first Nordic well to produce from this zone.
Total Proved + Probable Reserves of heavy oil as at October 1, 2009, have increased to 888 MSTB(x), compared to 805 MSTB at the beginning of 2009 and 540 MSTB in the prior year. This is broken down as follows:
- Total Proved Reserves: 447 MSTB (compared to 395 MSTB as at January 1, 2009)
- Total Probable Reserves: 440 MSTB (compared to 410 MSTB as at January 1, 2009)
As a result, the revised Reserves and Engineering Report also states that the Net Present Value of Nordic's estimated future net revenue based on forecast prices and costs before income taxes at 10% has risen nearly 25% since the start of the year to $17.473 million.
"This clearly indicates that Nordic continues to display strong production and reserve growth in its key regions," Mr. Benson stated. "In addition, given that we also recently announced that the Company is in the process of getting prepared for a new 13-well drilling program to much deeper depths at Lloydminster, we anticipate that the new 2010 Reserves and Engineering Report will be substantially stronger."
In other news, Mr. Benson also noted the Company has completed drilling its previously announced new gas well in Joffre, Alberta. The new well will be perforated in the Viking zone in the coming days.
"The logs show the Viking zone on this new well to be similar to the Viking zone in another well in the same section," he stated. "In the past, wells in this zone have been good producers for us.
"In addition, the logs from this new well are prospective in the Basal Belly River, the Belly River and the Edmonton zones," he added.
(x) MSTB - 1,000 stock tank barrels of oil
- Nordic Secures Rig for Endeavour Exploration Wells (Nov 30)
- Saskatchewan Govt Gives Nordic Green Light to Drill at Endeavour (Nov 10)
- Nordic Enters ELF Agreement (Oct 29)