Norstra Closing in on First Drill Location
May 20 2013 - 9:00AM
NORSTRA ENERGY INC. WWW.NORSTRAENERGY.COM (OTCQB:NORX) ("Norstra"
or the "Company") is pleased to announce that it is finalizing the
evaluation of technical data this week for the first drill location
on its South Sun River Prospect. "We received the first seismic
interpretation from our geophysical team in Denver and are
reviewing the proposed first drill location internally. Once we
have evaluated and cross-referenced the proposed location with the
actual surface conditions for the drilling operations we will send
our surveying team out to stake the location and design the
drilling pad," stated Mr. Landry, the CEO & President of
Norstra. He further said: "We are also very excited about the
quality of the seismic lines."
Central to the viability of Norstra's South Sun River Prospect
are the subsurface well logs in the area. Norstra is fortunate to
have acreage that is near wells that show the likelihood of
commercial oil in the Bakken Oil Formation.
There are three key wells in the immediate vicinity of the first
potential Norstra drill site.
- Krone #3132 drilled by Shell Oil Company. This well
demonstrates those essential parameters for a commercial well in
the Bakken Oil Formation. There are 24 feet of Bakken middle member
present. The middle member of the Bakken Oil Formation produces
most of the oil today. The reservoir rock displays a resistivity of
200 ohms suggesting oil and gas is present. The well is less than
2.5 miles away from the first proposed Norstra drill site.
- Steinbach #1 drilled by Arco. The Steinbach # 1 well is around
3,000 feet deeper than the Krone well. The same reservoir is
present, but with deeper buried shales that are heated at a higher
temperature resulting in higher resistivities from the generations
of oil and gas. The resistivity here is over 2,000
ohms. The well is less than 5 miles south of the first
proposed drill site.
- Soap Creek Cattle Co. #1331 drilled by Flying J Oil and
Gas. The well is not studied much because it did not
penetrate the Bakken Oil Formation. It still has some very
significant information for our project. The well stopped in the
middle member of the Blackleaf Oil Formation at a depth of 5,480
feet. The Bakken is perhaps 3,000 feet deeper. What is of
interest is that in one of the many faults present, there is oil
described by the geologist, M.K. Jones. The oil is described
from 4,928 to 4,994 feet. It is in a fractured member of the
Taft Hill and the oil has been biodegraded to a heavy crude due to
the presence of the water in the fractures. This oil has
migrated up the thrust from deeper formations. The source for the
oil could be the Bakken Oil Formation. This well is less than 0.75
miles from the proposed first drillsite away. Just the fact
that oil is present so close to the Company's proposed well site is
extremely significant.
We anticipate that the Bakken Oil Formation on the Norstra drill
site may be very similar to the Krone well or Steinbach
well. A comparison has been made by the Company's technical
consultants between the Krone well and the Balcron 44-24 Vaira well
located in the Elm Coulee field of Eastern Montana. Elm Coulee
(2007) was the highest producing onshore oil field in the United
States, and it is Bakken Oil. This field is expected to exceed
270 million barrels of production from the Bakken Oil Formation at
depths of 8,500-10,000 feet. This is exactly the depth range around
the proposed Norstra drill location and in the Krone and
Steinbach.
The comparisons do not stop there.
|
Krone |
|
Vaira 44-24 |
|
|
|
|
1. Porosity |
4-6% |
|
3-6% |
|
|
|
|
2. Total thickness |
70' |
|
44' |
|
|
|
|
3. Middle member |
22' |
|
12' |
(Most productive Bakken
Zone) |
|
|
|
|
4. Resistivity |
400 ohms |
|
480 ohms |
|
|
|
|
5. Total organic content |
12% |
|
10% |
The Vaira 44-24 well has produced over 159,000 barrels of oil
and was completed in 1989 when new fracking and drilling
technologies were in their infancy. A series of upgrades have been
applied to this well but in today's world one would expect this
well to exceed these figures. The Company plans to employ all
of the latest completion technologies to drill the Norstra #1
well. Production is anyone's estimate but just based upon the
increased thickness of the Bakken Oil Formation at the proposed
Norstra location, the recoverable reserves may compare favorably to
those found in nearby
wells.
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 inferences, estimates, predictions
or comparisons made in relation to seismic information, subsurface
well logs, or to the Krone, Steinbach, or Soap Creek Cattle Co.
wells, the timing of exploration and drilling work on the
South Sun River Prospect, the timing and ability of the Company to
drill a well on the property, and the production and reserves of
such a well. 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.
CONTACT: For further information regarding
Norstra Energy Inc., please contact:
Norstra Energy - Investor Relations
Tyler Troup, B.Comm
Phone: 1-866-865-2780
E-mail: ir@norstraenergy.com
Website: www.norstraenergy.com
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