The management and board visited Houston and Calgary last week and had conversations with several players in the business over there. One of the issues we have been focusing on is preparation of the working program on our oil sand asset and also new agreements according to earlier guidelines. Our intention is as mentioned earlier to fulfill a program for a total of 5 core wells. We plan to complete these wells during the 2008/09 winter drilling season.
In this matter we have engaged a local engineering company to assist us with a feasibility study and state the framework for such a project. Furthermore we are aiming to clarify if the wells can later be converted to injectors- and production wells in case it is possible to put up a test facility, based on steam, for production and sale of heavy oil/bitumen.
Preliminary examination indicates that there is already road/highway and railway going through our property and also pipelines nearby. This and the supply of water and electricity is essential for production.
Further we may inform that we are negotiating with partners for a letter of intent (LOI) for approximately 50,000 acres of exploration rights for drilling to obtain production of oil and gas. These rights are located in the Province of Alberta in areas with existing production of oil and gas. So far there is an unwritten understanding to complete a formal purchase and sale agreement for formalization in a short time. This means that we may start a drilling program aiming for production in a short time.
The company has decided now to raise capital and go through an issue of shares of NOK 15 mill ( CAD 3 mill ) to prepare and fulfill the working programs on the oil sand project and the light oil/gas project. It will now be necessary with an issue of maximum 30 mill shares at NOK 0,50 (CAD 0,10 ) per share. The subscription period will be from May 14th to June 13th 2008. Payment of shares will take place by June 20th 2008 at the latest.
Calgary Canada /Fredrikstad Norway
Nordic Petroleum ASA
For questions or info call Arild Tolfsen, CEO
Telephone: 00 47 930 99 859