We are pleased to announce that we have signed a farm-out agreement with Mercom Oil Sands Plc which includes 50% of the Chard lease in Alberta, Canada. Mercom Oil Sands Plc is based in London, UK.
The new partner covers 100 % of the expenses in a working program up to CAD 2,5 mill. The program will be executed over approximately 13 months and involves
up to 12 core wells, laboratory studies, analysis of the viscosity of the bitumen, third party evaluation of resources to be upgraded to contingent resources and reserves, suggested extraction methods and feasibility program for a pilot facility.
In addition Nordic Petroleum AS receives CAD 0,7 mill cash against a transfer of 50% of the lease rights upon settlement. Nordic Petroleum’s wholly owned Canadian subsidiary, Norwegian Petroleum Inc., will be operator on behalf of the joint venture partners in the project.
Upon success there is a huge upside for the two partners through confirmation of producible and commercial oil. This will come from the approx. 300 mill barrels of original oil in place as is stated in the DeGolyer & MacNaughton report from 2008, or more according to our internal evaluations. The studies are based on logs from previously drilled wells through the oil sand layers in the area and from experience from other projects in surrounding and adjacent areas.
Fredrikstad, Norway 12.03.2012
Nordic Petroleum AS
Further enquiries, please call Arild Tolfsen,
Mobile : +47 93 09 98 59,
E-mail : email@example.com