Norwood Hits Pay in Nicaragua

Norwood Resources Ltd. has discovered gas, condensate and light oil in eight (8) separate zones in its exploration well, the San Bartolo Rodriguez Cano #1, on its Nicaraguan onshore concession.

The discovery was made below 6,000 ft in various turbidite sands of the Paleocene Brito formation and achieved a total drilled depth of 8,790 ft with a bottom hole deviation of 11.5 degrees. The company has logged the well and independent petrophysical analysis combined with core (percussion and rotary) analysis has assigned a combined 532 ft of pay, including 232 ft of conventional pay and another 300 ft of naturally fractured low permeability sands in eight (8) separate zones. Results from core analysis indicate porosities in the 17% to 21% range with permeability from 3 to 30 mD. These porosity measurements agree favorably with the log measurements.

Completion planning, testing and stimulation design will take several weeks due to the number and variability of pay zones. The San Bartolo #1 has been cased and cemented to 8764' with 7" casing.

As this is the first exploration well in Nicaragua in over 35 years and the first onshore to this depth, drilling took 47 days. The rig is now moving the 11 Kms to the Company's original #1 location, the Las Mesas structure, which is up dip from the San Bartolo structure. Amplitude and velocity seismic sections indicate similar but shallower Paleocene Brito sands at this location.