Lloydminster Well Pumps First Oil

Nordic announced that the first of the five standing cased wells at Lloydminster that were drilled last December has been placed on production. The newly completed well, located on 10-6-50-1 W4M, is producing approximately 40 bbls/day of heavy oil (13 bbls/day net to Nordic) from the Sparky formation.

Pending weather conditions, the operator of the wells expects to complete three of the remaining four standing cased wells by the end of September, with production rates from each anticipated to approximate the 10-6 well of 40 bbls/day gross (13 bbls/day net each to Nordic). This would result in a total estimated production from the four wells of approximately 160 bbls/day gross (53 bbls/day net to Nordic).

"Our share of the production from the 10-6 well means that Nordic's production from the Lloydminster wells should increase to approximately 50bbls/day," Mr. Benson stated. "When we factor in the next three wells, our production could increase by a further 40 bbls/day, bringing our overall total to approximately 90 bbls/day from the Lloydminster wells."

Mr. Benson added that Nordic and its partners in the region are planning to drill two new wells in Lloydminster before the end of this year, and have identified two wells for re-entry. As such, when all wells are on production, Nordic will have a 1/3 interest in 18 wells at Lloydminster by the end of 2010.