Nordic Petroleum ASA in negotiations regarding new and considerable agreements.
Nordic Petroleum ASA are in negotiations regarding several considerable agreements for the future development of the company, of which minimum one is expected to be signed within short. We are informed that speculations regarding this are currently circulating and find it appropriate to try to clarify the facts to date as far as possible.
The first agreement concerns an additional purchase of an oilsand/shale area, approximately in the same region of Canada as our first agreement. The company is at present into the final stages of a very long and time consuming negotiations process. We aim to give further and more detailed information when the agreement is expected to be signed shortly. In short, this is regarding a considerable field with even larger expectations for oil prospects as the first, and the negotiation for this second agreement has been ongoing since last summer. I this new project Nordic Petroleum ASA will seek a partner who will take the main responsibility of the development of the new field.
The next challenge and potential agreement is to enter into a cooperation (Farm in) with a partner willing to further develop and evaluate the large oilsand field which the Company acquired in the Fall of last year (The Chard-project in Athabasca Oilsands in the Alberta province).
Such agreements imply that we find a potential partner who is willing to carry out the work of developing the field and simultaneously covers the costs connected to this. The main part of the risk will thereby be transferred to said partner. As a return service the partner will build up an owner’s share and become partner in the field. The project work will be to carry out the shooting of seismic and later, drilling of a number of testing wells. The aim is to upgrade the wells to P2/P3 reserves for very little costs. New and improved technology together with high oil prices may create a value potential in this of considerable proportions.
Up to the New Year of 2007/2008 the Company has defined the following goals/phases of the further development:
- i) secure more and larger agreements and drilling rights
- ii) initiate development and upgrading of drilling rights already on our hands
- iii) obtain production facilities (via mergers and/or purchases)
- iv) secure financial freedom of action (through sales, loans and/or new issue)
- v) build up expertise internally in own administration and in the Board
- vi) establish new cooperation partners and define an optimal cooperation form with these.
The main ambition is to develop the share values within a justifiable risk taking. When all the above stages/phases have been obtained, it might be a financial goal to apply for entrance into Oslo Axess. Per date we do not feel that this will be feasible as yet. Other alternatives might be industrial sales, mergers or similar. This will continuously be assessed, but as of now not determined in time.
Moreover, the new Board of Directors would like to express their thanks to the founders of Nordic Petroleum ASA represented by Mr. Skotte and Mr.Westby for the extensive efforts they have made and the cooperation through the Fall of 2007 in order to obtain these very hard obtainable agreements through their unique contact net in North America, and their smooth negotiations through the whole process. Our main area of development and projecting will still geographically be based in North America, where our network is steadily increasing.
Further operation and an exciting period in 2008
As we now have obtained a wider network of contacts in Canada, we want to convert to a bilingual form of communication with the outside world, and we will seek to obtain a better quality of our Web-site.
So far we have not published quarterly figures, as we deemed it more important to put together the annual accounts for the first operational year. We are making considerable efforts in order to publish our Annual Accounts for 2007 shortly. The plan is to have these ready for the General Assembly to be held in April 2008.
During last fall the Board has reached the decision that the Piikani-agreement will not be given preference in the near future. The market development has resulted in the conviction that we probably will be able to make similar agreements for lower price and risks than what the Piikani deal will give us. The difference in cultures also makes this agreement very risky. The basis will be that we will not consider the Piikani agreement as a potential possibility; but rather choose to look for new possibilities; i.e. possibilities that we consider to be more realistic and profitable for our share holders than the Piikani deal.
At the start of 2008 the possibilities for our Company are looking prosperous. We have established a new Board of Directors with broad professional competence and experience within oil development and other business development, and we are now fulfilling the Law’s demand to female quota in the composition of the Board. We welcome the new members of the Board to our team.
As information to the share holders, we will point out that our administration as of today accounts for one man-labor year combined, numbering the undersigned and one secretary on a part time basis, as the Company at present has very limited administrative resources and the priority of the different tasks must be considered in this light together with a sober operating budget.
Finally, we thank you all for the confidence you have given us so far and take this opportunity to wish all our share holders a Happy New Year 2008. The Board is positively considering the prospects for the Company in 2008, especially in connection with the projects and activities around our new partners and projects in North America.
Fredrikstad, January 8, 2008,
Nordic Petroleum ASA
For further information you may call Mr. Tolfsen
Directly on: +47 69316800 or +47 930 99 859