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Nordic Oil and Gas Announces First Quarter 2008 Results
WINNIPEG, May 30 /CNW/ - Donald Benson, Chairman and Chief ExecutiveOfficer of Nordic Oil and Gas Ltd. ("Nordic" or "the Company") today announcedthe Company's financial results from operations for the three-month periodended March 31, 2008. All amounts referenced herein are in Canadian dollars.Revenue from oil and natural gas sales (including liquids, transportrevenue and interest earned) during the first quarter of 2008 totalled$149,101 compared to $189,139 in Q1 2007. Although down slightly from a yearago, the Q1 2008 revenue was up when compared to the previous two quarters andis the highest since Q2 2007. In addition, gross profit from operatingactivities (production revenue minus production costs, not including royaltiespaid) totalled $88,366 for the quarter ended March 31, 2008, compared to$145,927 for the same period in 2007. Furthermore, revenue from operatingactivities (cash received from operators minus royalty expense) totalled$121,089 for the quarter ended March 31, 2008, compared to the $157,707reported in prior year.Current assets, including cash, term deposits and accounts receivable atthe end of the first quarter were 5,847,257, up significantly from the$3,169,248 at the end of 2007. This was due largely to the successfulfinancing completed during the first quarter of the year. Total assets as atMarch 31, 2008 were $10,882,995, up significantly from the 2007 year-end totalof $7,713,059. This was due primarily to the substantial increase in shortterm investments which increased to $3,907,439 from $204,191 in 2008.The net loss for the period was also higher than that recorded during Q1in 2007 - $124,445 versus $115,690. The increase in the 2007 loss canpartially be attributed to the rise in the Company's stock based compensationand the General & Administrative (G & A) expenses. Net loss per share in Q12008 was $0.0034 compared to a net loss per share of $0.0073 in Q1 2007.Liabilities and shareholders' equity at the end of March 2008 totalled$10,882,995 compared to $7,713,059 as at December 31, 2007. The increase isdue to the rise in accounts payable of $626,879 and the first quarterfinancings that increased shareholders' equity. Accounts payable rose becauseof a reclassification of related party receivables and payables.Overall expenses, not including production costs for the quarter underreview, increased to $575,264 from $233,791 for the year prior. The primaryreason for the increase in total expenses was the sharp rise in stock optionexpenses to $284,473 as opposed to nil in Q1 2007 and the increase in G & Aexpenses to $99,888 from $39,662.Commenting on the financial results Mr. Benson stated: "We are pleased tosee that our revenue has increased when compared to the previous two quartersand we expect this trend to continue in the quarters ahead. In addition, weare also delighted that we are in such a strong cash position at the end ofthe quarter. Our ability to raise a record amount of money in 2007, coupledwith the successful financing that closed in March of this year, we are on thestrongest financial ground we have ever been on."This will allow us to undertake our most aggressive and largest capitalexpenditures program in our history, beginning with our exploration drillinginitiatives in Preeceville, Saskatchewan and our development drillingactivities in both Joffre and Lloydminster, Alberta," he added. In other news, Mr. Benson also announced today that Nordic has retainedRaymond James Ltd. ("Raymond James") to act as the Company's agent for abrokered private placement financing. Raymond James will be offering thisfinancing to a predetermined select group of clients. The Offering willconsist of up to 4,166,666 Units ("Units") at a price of $0.60 per Unit fortotal gross proceeds of $2.5 million.Each Unit will consist of one Class A common share of the Company issuedas 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"). Eachwhole Warrant will entitle the holder thereof to purchase one non flow-throughregular Class A common share of the Company at a price of $0.85 for a periodof two years from the date of issuance.A cash selling commission of 7.5% of the gross proceeds raised will bepaid on this transaction to Raymond James Ltd. In addition, Nordic will alsogrant to Raymond James, broker warrants equal to 8% of the number of Unitssold pursuant to the offering. Each broker warrant will entitle the holderthereof to purchase one non flow-through Class A common share of the Companyat a price of $0.60 per share for a period of 24 months from the date ofissuance. In addition, Raymond James will be paid a corporate finance fee of$10,000 and will be reimbursed for its expenses by the CompanyIt is expected that the Offering will close on or about June 25, 2008,subject to regulatory approval. All the terms of the Offering are also subjectto the approval of the TSX Venture Exchange.About Nordic Oil and Gas Ltd.Nordic Oil and Gas Ltd. is a junior oil and gas company engaged in theexploration and development of oil, natural gas and Coal Bed Methane inAlberta and Saskatchewan. The Company is listed on the TSX Venture Exchangeand trades under the symbol NOG.The TSX Venture Exchange has not reviewed nor accepts responsibility forthe adequacy or accuracy of the contents of this News Release.This news release contains certain statements that may be deemed"forward-looking statements". All statements in this release, other thanstatements of historical fact, that address events or developments that theCompany expects to occur, are forward-looking statements. Forward-lookingstatements are statements that are not historical facts and are generally, butnot always, identified by the words "expects", "plans", "anticipates","believes", "intends", "estimates", "projects", "potential" and similarexpressions, or that events or conditions "will", "would", "may", "could" or"should" occur. Although the Company believes the expectations expressed insuch forward-looking statements are based on reasonable assumptions, suchstatements are not guarantees of future performance and actual results maydiffer materially from those in forward-looking statements. Factors that couldcause the actual results to differ materially from those in forward-lookingstatements include market prices, exploration and drilling success, continuedavailability of capital and financing and general economic, market or businessconditions. Investors are cautioned that any such statements are notguarantees of future performance and actual results or developments may differmaterially from those projected in the forward-looking statements.Forward-looking statements are based on the beliefs, estimates and opinions ofthe Company's management on the date the statements are made. The Companyundertakes no obligation to update these forward-looking statements in theevent that management's beliefs, estimates or opinions, or other factors,should change.