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Message: Announcement of two new private placement offerings

Announcement of two new private placement offerings

posted on Jan 21, 2010 03:19PM

Nordic Oil and Gas Announces Two New Private Placement Offerings

	    Funds to be Used to Drill New Test Well at Talbot lake + 7 New Wells at
Lloydminster

	    WINNIPEG, Jan. 21 /CNW/ - Donald Benson, President of Nordic Oil and Gas
Ltd. ("the Company" or "Nordic") announced today that the Company intends to
undertake two new non-brokered private placement offerings ("The Offerings") .
They will be comprised of up to 20,000,000 units at a price of $0.15 per Unit
for gross proceeds of $3,000,000 to various subscribers; and, 2.0 million
units at a price of $0.12 per Unit for gross proceeds of $240,000.
	    Each Unit priced at $0.15 will consist of one Class A common share of the
Company issued as a "Flow-Through share" within the meaning of the Income Tax
Act (Canada) and one-half of one Class A common share purchase Warrant ("a
Warrant"). Each whole Warrant would entitle the holder thereof to purchase one
regular Class A common share of the Company at a price of $0.18 for a period
of 18 months from the date of issuance.
	    Each Unit priced at $0.12 will consist of one Class A common share of the
Company plus one-half of one Class A common share purchase Warrant. Each whole
Warrant would entitle the holder thereof to purchase one Class A common share
of the Company at a price of $0.14 per share for a period of two years from
the date of issuance.
	    The securities issued pursuant to both Offerings are subject to a
four-month holding period from the date of closing. The Company anticipates
multiple closings in the coming weeks.
	    Certain finders are expected to assist the Company by introducing
potential subscriber(s) to the new Offering and, subject to compliance with
applicable legislation, will be entitled to receive fees equal to 8% of the
purchase price of the new Units sold pursuant to the new Offering, as well as
warrants ("Finder's Warrants") equal to 8% of the number of new Units sold
pursuant to the new Offering. Each new Finder's Warrant shall entitle the
holder thereof to purchase one regular Class A common share of the Company at
a price of $0.18 and $0.14 respectively for a period of 18 months from the
date of issuance.
	    All terms of the new Offerings are subject to the approval of the TSX
Venture Exchange.
	    "A portion of the funds generated from these two Offerings will be used
to drill a new deep test well - 1,500 metres - on our Talbot Lake property,
with the remainder of the money used to drill an additional seven new heavy
wells at Lloydminster," Mr. Benson. "This would pave the way for us to begin
our drilling program in Talbot Lake and, will bring to 25 the total number of
wells at Lloydminster."
	    With regard to the seven wells drilled at Lloydminster prior to the end
of 2009, the first two that were placed on production, "are producing at
levels consistent with our initial projections," Mr. Benson stated. The
remaining five wells will be placed on production shortly.
	    "We continue to anticipate that our production levels will be between 200
and 250 barrels of oil per day** when all wells are on production*," he added.
	    Also at Lloydminster, Mr. Benson noted that work continues in preparation
for drilling a new horizontal well. "Interpretation of the 3-D seismic will be
completed in the first quarter and will assist us in determining the first of
what will be multiple locations for new horizontal wells to be drilled in the
second quarter of this year."

	    About Nordic Oil and Gas Ltd.

	    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 Corporation is listed on the TSX Venture
Exchange and trades under the symbol NOG.

	    Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of the contents of this News
Release.

	    * The projections in this new release are consistent with the Company's
current Reserves and Engineering Report prepared by Chapman Petroleum
Engineering Ltd.

	    ** The term BOEs may be misleading, particularly if used in isolation. A
BOE conversion ratio of 6 Mcf: 1 barrel is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.

	    This press release contains forward-looking statements with respect to
Nordic Oil and Gas Ltd. properties, and matters concerning the business,
operations, strategy, and financial performance of Nordic. These statements
generally can be identified by use of forward-looking words such as "may",
"will", "expect", "estimate", "anticipate", "intends", "believe" or "continue"
or the negative thereof or similar variations. Such forward-looking statements
are qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations, including that the estimates and projections
regarding the properties are realized. Forward-looking statements are based on
a number of assumptions which may prove to be incorrect. Unless otherwise
stated, all forward looking statements speak only as of the date of this press
release and Nordic does not undertake any obligation to update such statements
except as required by law.






-30-
	    /For further information: Don Bain, Corporate Secretary, Nordic Oil and
Gas Ltd., Tel. (204) 832-7717, Fax. (204) 943-1829, E-mail: donbain1@mts.net/
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