Norstra Enters Bakken Oil Boom
March 18 2013 - 8:19AM
NORSTRA ENERGY INC. ("Norstra" or the "Company"), (OTCQB:NORX) is
pleased to announce that it has entered into a farm-out agreement
with Summit West Oil, LLC. for the South Sun River Bakken Prospect.
The South Sun River Prospect was identified by the Company's
management as an excellent target for a Bakken well. It consists of
over 10,000 acres of prime Bakken acreage with almost 10 years left
on most of the leases. Bakken development is considered simple and
basic horizontal drilling. Under the Farm Out Agreement Norstra
will provide $200,000 for short term working capital and drill and
complete a first well into the Bakken Oil Formation by December 31,
2013; a second well into the Bakken Oil Formation by June 30, 2014
and drill and complete a third well into the Bakken Oil Formation
by December 31, 2014. Upon completion of these drilling
obligations, Norstra shall have earned 100% working interest in the
entire acreage constituting the farm-out land. In the event
that Norstra only completes the first and/or the first and second
well, but elects not to proceed with the second and/or third well,
Norstra will earn the above mentioned working interests only on the
spacing unit on which well(s) have been drilled.
The Company's CEO, Mr. Glen Landry is a seasoned, third
generation geologist who has spent 30 years exploring for oil and
gas with a focus in Montana and North Dakota since 1980. Historical
seismic, exploration and drilling records, some of which Mr. Landry
was personally involved in, have been reviewed by the
Company. The historical work was focused exclusively on deeper
oil formations as the Bakken was not a commercially accessible oil
formation at the time due to horizontal drilling and fracking
technologies not being available. The technological revolution in
the oil service industry has changed this. The sizable data
provided through this existing historical logging and seismic work
that covered the Bakken potential is now proving invaluable and
during the last five years Mr. Landry spent significant time
evaluating the Bakken Oil Formation in Montana and North
Dakota.
A large blanket deposit covering hundreds of square miles is
present and is currently being developed by over 200 drilling rigs
in the Williston Basin of Montana and North Dakota. The Bakken
Fairway in Northwest Montana, where the South Sun River Prospect is
located, is very similar in geology and in log
comparisons. Resistivity on logs, regional isopach maps of
Bakken maturity, and the extensive existing seismic data guides the
drill site selection for development of the project. The Company
believes that the South Sun River Bakken Prospect is well within
the maturity window and oil is confirmed with the offsetting Krone
well that is just over 1 mile away that was drilled by Shell Oil
Co. in the past while they were looking for deeper oil targets.
"This is a fantastic opportunity for Norstra and its
shareholders," said Mr. Landry, the company's CEO. "I believe
that this area of Montana could become the next Williston basin in
time and we're well positioned to be a player in the area," he
continued.
About Norstra Energy Inc.
Norstra Energy Inc., a US based oil and gas Exploration Company
with interests in over 10,000 acres of prime Bakken formation land
in Montana. The company is targeting the South Sun River
Prospect for a horizontal Bakken well proving the prospect from
exploration to production.
Disclaimer
This press release contains "forward-looking statements."
Statements in this press release which are not purely historical
are forward-looking statements and include any statements regarding
beliefs, plans, expectations or intentions regarding the future,
and specifically references to the maturity and potential of the
South Sun River Prospect. The reader can identify these
forward-looking statements by forward-looking words such as "may,"
"will," "expect," "potential," "anticipate," "forecast," "believe,"
"estimate," "project," "plan," "continue" or similar words.
The reader should read statements that contain these words
carefully because they discuss future expectations, contain
projections of future results of operations or of financial
condition, or state other forward-looking information.
Forward-looking statements include, but are not limited to,
statements regarding potential oil production, revenues, expansion
efforts, and future plans and objectives of Norstra Energy
Inc. The risk factors listed in our disclosure documents and
the cautionary language on the Company's website provide examples
of risks, uncertainties and events that may cause actual results to
differ materially from the expectations and projections described
by Norstra in its forward-looking statements. Actual results
relating to, among other things, oil reserves, production, revenues
and profitability could differ materially from those currently
anticipated in such statements. Factors affecting
forward-looking statements include: results of exploration
activities, ability to secure operations staff and equipment;
changes in the operating costs; changes in economic conditions,
foreign exchange and other financial markets; changes of the
interest rates on borrowings; in the investments levels;
litigation; legislation; environmental, judicial, regulatory,
political and competitive developments in areas in which Norstra
operates; technological, mechanical and operational difficulties
encountered in connection with Norstra's development activities;
and labor relation matters and costs. The reader should refer
to the risk disclosures set out in the periodic reports and other
disclosure documents filed by Norstra from time to time with the
Securities and Exchange Commission and other regulatory
authorities.
CONTACT: Norstra Energy Investor Relations
Phone: 1-866-865-2780
E-mail: ir@norstraenergy.com
Website: www.norstraenergy.com
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