Poplar Creek Resources has given notice for the cancellation of the MOU agreement of 14 July 2010. The reason given is that they are unable to raise sufficient capital to finance both the conditions of the agreement, with additional commitments for the development of Chard, and their obligations in their existing portfolio. No thorough study has been conducted nor commissioned from a third party that contradicts the findings of DeGolyer & MacNaughton.
The parties have therefore agreed not to continue negotiations on a final agreement based on the MOU terms. Poplar have stated that they remain open to other solutions to ensure continued cooperation that can strengthen both companies.
In light of the recent rise in oil prices and increasing interest in oil sands and oil sands licenses from a number of energy companies the agreement with Poplar Creek Resources is no longer viewed as particularly attractive. Nordic Petroleum’s board and management are therefore not entirely disappointed that Poplar Creek Resources has terminated the agreement.
Nordic Petroleum has noted interest in the Chard field from several oil companies including major oil companies. Nordic Petroleum’s board will continue working towards implementing a core drilling program for Chard in the first quarter of 2011, which will be financed by equity and other funds. It is the board and management’s clear view that this program can greatly increase the value of the Chard field, and thus the shareholder’s value in Nordic Petroleum will rise accordingly.
The Board will inform shareholders as soon as there is news to report.
Fredrikstad, Norway 01. November 2010
Nordic Petroleum AS
Contact Arild Tolfsen with enquiries,
Mobil : +47 93 09 98 59,
E-mail : email@example.com