Nordic Oil neighbour finds oil in Red River
Nordic Oil neighbour finds oil in Red River 2016-02-12 08:31 ET - News Release Mr. Donald Benson reports OILA DISCOVERY Nordic Oil & Gas Ltd. recognizes the efforts of Saturn Minerals Inc., symbol SMI. On Tuesday SMI announced the discovery of oil in the Herald, and the upper and lower Yeoman formations which are all within the Red River formation. This is very good news for Nordic Oil & Gas in that it has 60 sections of petroleum and natural gas leases approximately 36 miles to the southeast of the SMI play. Nordic Oil & Gas pioneered in this area starting in 2001 and in 2011 discovered oil in the same zones as SMI has, however, the heavy drilling mud used in drilling its well made producing the well a challenge. Nordic's Red River well came in about 100 metres deeper thus its well pressure should be greater, which is positive. Nordic has never acidized the well as yet so there is still a high probability that the well is capable of production. Based on the company's logs and swabbing of actual oil from the well it was determined that it has 33 American Petroleum Institute oil present. An independent reservoir engineering firm has assigned probable reserves to the current well and one additional location. Engineering firms assign probable reserves based on science and facts. While Nordic Oil & Gas does carry some debt it also has approximately four times the coverage in the form of proved plus possible reserves from its holdings in Saskatchewan, Alberta and British Columbia. "We are not receiving any recognition of our true value," stated Donald Benson, president. "When the dust settles and Saturn and its partners turn back 75 per cent of their holdings to the Crown as mandated by the special exploratory permit requirements, Saturn will own approximately the same holding as Nordic," he said. Under the circumstances Nordic Oil & Gas is discontinuing its current flow-through financing and re-evaluating whether or not to consolidate its shares. SMI is trading for 20 times more than Nordic Oil & Gas and has about the same number of shares outstanding. "We have been right all along and when our consultant Paul Lafleur of Petro-Find Geochem Ltd. of Saskatoon concluded in 2008 that this was an oil-prone area based on oil seeps and soil gas analysis, we traded as high as 80 cents," stated Mr. Benson. Year of the Profit, Oilseeker, Ya I'm still here