The company wishes to provide the following update and status;
1. Access to well # 1 Carmangay
2. Test production well # 1
3. Well #2 Carmangay commenced
4. Further investment opportunities in Canada
Access to well # 1 Carmangay
We have now, finally, gained access and resumed testing of well #1. The preliminary results show a marked seepage of oil in the well. Something that is interpreted as positive and which will provide a basis for further testing.
Test production well # 1
Based on this positive data, we have now set in motion work to cleanse the well. Then a pump will be installed in order to implement a test production during a three-month period. The goal is to determine reserves and production before the well can declare it commercial.
Well #2 Carmangay commenced
We chose now to exercise the option to drill well #2 as the company has in accordance with the Farm-in agreement. Well #2 will according to the agreement be drilled on the western sections which are located in the outskirts of a promising structure with an existing production of oil. The greatest uncertainty here is what production rate that can be achieved. The Farm-in the agreement gives us currently the right to drill 6 – 8 wells in total, but the number of wells can be raised in pace with commercial success in this area.
Further investment opportunities in Canada
The above-mentioned well #2 involves an immediate capital requirement of NOK 2.5 – 3 mill.
As accounted for in the meeting ahead of the ordinary general meeting, the company has succeeded in identifying other well sites with a high expected discovery probability and the opportunity for good production rates. This will provide rapid returns and solid profitability for shareholders.
This investment program has a scope of between NOK 29 million and 51 million for the next 8 – 12 months, which has yet to be financed and thereby will be dependent on the available funding in the market.
For questions or requests for more information we refer to our homepage www.nop.as and a new company presentation that has been used in the briefing ahead of the annual general meeting 19.05.2009.
Fredrikstad, Norway 20th May 2009
Nordic Petroleum ASA
Please contact Mr. Arild Tolfsen for more info,
Mobile : +47 – 930 99859,
E-mail : email@example.com