Nordic has entered into a formal purchase and sale agreement with Western Plains.
Under the terms of the Agreement, Western Plains will acquire a 50% interest in Nordic's 26 Local Service Districts (LSDs) (net 1,060 acres) of land in Lloydminster including nine heavy oil wells currently capable of production, plus an additional five wells drilled at the end of 2009. Since becoming contract field operator of the Nordic wells in mid-April 2010, Western Plains has re-activated eight of Nordic's shut-in heavy oil wells, which are now producing approximately 85 to 90 bbls/d.
Western Plains will acquire its 50% participating interest in the Nordic property for an aggregate consideration of $2.2 million, including a $100,000 non-refundable cash deposit, which has been received by the Company. The effective date of the Acquisition is April 12, 2010, with closing anticipated to occur no later than July 31, 2010.
The closing of the Acquisition is subject to the completion of a number of conditions, including the completion of a private placement by Western Plains in the amount of $1,500,000 and receipt of all necessary regulatory and third party approvals, including the approval of the TSX Venture Exchange.
"As we stated in our April 13 News Release, this deal with Western Plains is of significant magnitude and importance for Nordic," Mr. Benson stated. "In addition to allowing us to settle with a number of suppliers, it provides us with another significant influx of capital, which will allow us to move ahead with such initiatives as bringing on the five new wells in Lloydminster and developing our projects in Joffre and Talbot Lake, Alberta, and Preeceville, Saskatchewan."
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