ON THE MEGA PYRAMID FIELD AND POTENTAIL NEW FARM-IN DIRECTED SHARE ISSUE AGAINST EXISTING SHAREHOLDERS
The company has now preliminary working programs for their three fields (gas and oil-sands) in the Province of Alberta, Canada. Further the company invites existing shareholders for a right share issue of NOK 15 mill. More information can be found on the new Web site www.nop.as.
The ambition is to perform drilling on the Skyway project south of Calgary. The Skyway farm-in project is under negotiation and expected to be signed shortly and have a potential of gas production starting at the end of this year. In Q1 2009 the plan is to commence a drilling program on the Mega Pyramid field with a high possibility for commercial production of natural gas.
We would like to point out that gas wells neighboring the Skyway and Mega Pyramid fields have proven flow test rates of more than 8 mmscf/day. By conversion of the gas test rate to barrels oil equivalents, this may be converted to more than 1.300boe/day.
Further plans involves upgrading of the potential resources on the oil-sand field the Chard which today have indication of a total of 296 mill barrels of oil/bitumen ”in place”. After core drilling and tests of the bitumen, we expect upgrading of the reserve estimates, which will increase our shareholder values substantially.
During the first phase of the development we plan to apply steam generating producing facilities which is already been tested and fabricated to be delivered within a 9 months period. Such steam producing facility can provide thermal effect for between 6 and 10 producing wells. Several optional alternatives are being considered.
To realize these plans and activities, the company prefer to raise NOK 15 mill (equivalent to approx. CAD 2,7 mill) in new share capital issue directed towards current shareholders, with shareholdings as per 29th October 2008. The company will issue 60 mill shares at NOK 0,25 (equivalent to approx. CAD 0,044). The subscription period commencing on 30th October and ends on 14th November 2008.
NOK 3 mill of the share issue is already guaranteed subscribed by a group of the biggest shareholders.
Application form, full Prospectus and Summary of the prospectus can be obtained from the Web site. Netfonds is Clearing agent in the share issue. Financial Adviser is Procorp by Gunnar Holen.
Fredrikstad/Norway 23rd October 2008
Contact info: Arild Tolfsen 00 47 930 99 859