Nordic Petroleum AS – Extension of Completion with Mercom Oil Sands

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Mercom Oil Sands Plc (Mercom) and Norwegian Oil Sands (Norwegian) have
entered into an agreement that provides Mercom with a further 90 day
period to complete the Sale and Purchase Agreement entered into February
15th 2012, and amended by Amendment #1 dated March 14, 2012 (the «SPA»).
The new final date for completion is October 31st 2012.

Norwegian is aiming for a startup of the preparatory part of the program
Q4 2012 with the field operations to commence Q2 2013.

http://www.netfonds.no/quotes/release.php?id=20120827.NFMF.13160

SUMMONS TO THE EXTRAORDINARY GENERAL ASSEMBLY IN NORDIC PETROLEUM AS

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All Shareholders in Nordic Petroleum AS are hereby summoned to the Extraordinary General Assembly on
30.8.2012 at 18.00 hours
At Kasernegaten 47, 1632 Gamle Fredrikstad, Norway (In the fortified old town of Fredrikstad).
Based on resolution from the ordinary general assembly of 26.4.2012 there will be an extraordinary general assembly by 30.8.2012.

Download Summons Ex.o. General Assembly 30.08.2012 as pdf here.

 

COMPLETION OF AGREEMENT WITH MERCOM OIL SANDS

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After receiving partial payment of CAD 0.2 million of a total transaction value of CAD 3.2 million (including CAD 0.1 million for granting an extension to Mercom Oil Sands Plc (“Mercom”) under Amendment #1), CAD 3 million remained unpaid by Mercom Oil Sands on the agreed latest Completion date of 31.7.2012.  Mercom closed its IPO on 29.5.2012 and Mercom announced that they have raised their capital budget for the Chard operation program plus working capital needed.  Despite this success, Mercom requested a further extension of 90 days from August 1st. The stated reason for Mercom’s request is that the newly employed CEO wants to further analyze the project. This was turned down by our Board of Directors. Our Board has, however, offered an extension of up to 60 days on payment of a further non-refundable deposit. So far Mercom Oil Sands has not accepted this, but will announce their decision after a board meeting later this week.

We are in dialogue with alternative local and potential contractors for execution of the work program. If the program is approved by the joint Operating Committee before 1st September the physical part of the work program can be executed at reduced prices now pre-season. The field activity costs increase considerably from 1st December until the end of March, states the interim Project Manager Garry Mihaichuk from Calgary.

 

Fredrikstad, Norway 7.8.2012

Nordic Petroleum AS
Further enquiries, please call Arild Tolfsen
Mobile : +47 93 09 98 59
E-mail : arild.tolfsen@nop.as

Nordic Petroleum’s partner Mercom Oil Sands is now listed in London and has secured funding for the joint work program for proving and verification of resources and reserves.

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Nordic Petroleum’s partner Mercom Oil Sands is now listed in London and has secured funding for the joint work program for proving and verification of resources and reserves.

As previously announced, we entered into a farm-out agreement with the company Mercom Oil Sands Plc encompassing 50% of the Chard leases in Alberta, Canada. The remaining participating interest in the Chard leases will still be in NOPE’s ownership through our subsidiary Norwegian Oil Sands. Norwegian Oil Sands Corp. will be the operator. The parties have now finalized negotiations, signed and entered into all relevant agreements for the transaction and joint operations for the implementation of the project.

Mercom Oil Sands Plc is based in London and as of last week listed on the London Stock Exchange AIM under the ticker MMO. The company’s only asset is Chard.
(See link; http://www.bloomberg.com/quote/MMO:LN)

Both parties have fulfilled their obligations under the agreement after the schedule of payments was amended. Mercom Oil Sands has also obtained funding needed to comply with the other obligations in the agreement. The final settlement is expected to take place by the end of July or earlier before the transfer of the 50% stake in Chard to Mercom Oil Sands Plc.

Contingent Resources
Mercom Oil Sands has commissioned a study of the resource estimates for the Chard field. It is available on the following link from pg. 43 and onwards,.
http://www.mercomoil.com/Mercom_Oil_Sands_plc_AD_230512.pdf

DeGolyer & MacNaughton completed the independent assessment for Mercom Oil Sands that already classifies 21-60 million barrels of resources in Chard as contingent resources (economically recoverable). Potential economically recoverable oil based on proven resources is estimated at 70-127 million barrels.

Work program for the proving of resources and reserves

The work program for the proving of resources aims to verify and document the resources further. The program comprises 8 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 with commercial production.

Operational implementation of the project, as previously announced, is planned for Q3 2012. As soon as the results of the work program are available the parties will begin working on the planning of and application for a pilot facility for commercial production of bitumen.
Fredrikstad, Norway 4.6.2012

Nordic Petroleum AS
Further enquiries, please call Arild Tolfsen,
Mobile : +47 93 09 98 59, E-mail : arild.tolfsen@nop.as

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