Nordic Oil & Gas Closes Peace River Arch Acquisition
Nordic Oil and Gas has closed the previously reported acquisition of approximately 8,000 acres of Petroleum & Natural Gas leases in the Lloydminster and Peace River Arch regions of Alberta. Nordic has acquired these assets for cash considerations of $200,000, plus 1.5 million Class A Common Shares of the Corporation at a price of $0.30 per share, for a total acquisition price of $650,000.
"We are pleased that vendors of this caliber have taken our stock at a price of $0.30 as part of this deal," Mr. Benson says. "It displays their confidence in Nordic knowing that these new lands will vastly enhance the Corporation's share value."
As a result of today's closing, the Corporation has acquired 1,080 acres of land in the Lloydminster region of east-central Alberta and 7,040 acres in the Peace River Arch region of northwestern Alberta. Overall, this acquisition will triple the Corporation's land holdings and development drilling locations in Alberta, and will provide Nordic with new core areas, which will be a strategic fit for its current production and ongoing drilling activities at Joffre, Alberta.
At Lloydminster, the Corporation believes there exists significant amounts of un-recovered heavy oil, which, says Mr. Benson is being produced at a depth of 600 meters. "Initially, at least 10 new locations have been identified for immediate drilling. In all, these lands provide over 100 potential drilling locations.
"We also believe that initial rates per well could be in the area of 30 bopd and that approximately 43,000 bbls of oil could be recovered from each well on average," Mr. Benson adds.
The Peace River Arch property is comprised of 11 sections on the shallow gas trend in northern Alberta in the Talbot Lake area. The land is adjacent to production from the Blue Sky/Gething zone at a relatively shallow depth of 525 meters and is within 1-2 miles of potential tie-in. Sub-surface mapping shows that potential exists on these lands for 7 initial locations, with an overall total of 11 potential locations.
"The play in the Peace River Arch will initially be that of Blue Sky gas at a depth of 525 meters," Mr. Benson states. "Both of these plays are in actively producing areas, not unlike where we are located in Joffre, and they now give us triple the number of development drilling locations in Alberta."
Nordic Oil and Gas Ltd. is a junior oil and gas company engaged in the exploration and development of oil, natural gas and Coal Bed Methane in Alberta and Saskatchewan. The Company is listed on the TSX Venture Exchange and trades under the symbol NOG.
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