LOVE THE NEWSNORDIC ACQUIRES COMPRESSOR STATION FROM DESOTO RESOURCES; SIGNS NEW TRANSPORTATION DEAL WITH ATCO PIPELINES
Nordic Oil & Gas Ltd. has acquired an 85-per-cent interest in a compressor station in Joffre, Alta., Canada, owned by Desoto Resources Ltd., a sister company of Nordic.
In conjunction with this, Desoto, which is the operator in the area, has signed a contract with Atco Pipelines to transport Noric Oil's gas. This will result in a significant reduction in the costs of the company's natural gas production in the region.
"Currently, we pay 70 cents per 1,000 cubic feet of gas transported via the existing pipeline system," said Donald Benson, chief executive officer of Nordic Oil. "With the signing of this deal with Atco, we estimate that our costs will drop by 50 per cent.
"In addition, this will also allow us to hire our own people to operate our wells, which will further reduce our costs," Mr. Benson added. "In time, we believe that we will be able to bring other producers into our system and turn the compressor station into a net earner for us, as opposed to an expense."
As part of the Atco deal, Atco will also build a new metering station, approximately three kilometres south of the Nordic property. The station will be paid for jointly by Nordic and Desoto.