Norstra Energy Announces Executed Contract With Faith Drilling Enabling an Immediate Start to Drilling; Closes on Financing D...
September 10 2013 - 3:43PM
NORSTRA ENERGY INC. WWW.NORSTRAENERGY.COM (OTCQB:NORX) ("Norstra"
or the "Company"), a company poised to expand the excitement of the
Bakken Shale oil deposit in Western North Dakota/ Eastern Montana
towards the geologically promising Rocky Mountain front/ Montana
Sweetgrass Arch, is pleased to announce it has signed and completed
a transaction with Faith Drilling (or "Faith") to set the surface
casing of Norstra's first well, the 13-11 Milford Colony. Work on
this first phase of the project has already commenced as Faith is
already on location rigging up. Subsequent planned work phases
include the completion of the 8,800 feet of vertical drilling
followed by 5,280 feet (1 mile) of horizontal drilling which would
incorporate a 10-12 stage frac.
The Company is also pleased to announce it has partially
completed (pending receipt of the funds) a debenture financing for
$250,000 which is convertible into common shares at a price of
$0.50, which is a 67% premium to the market price at the close of
trading on Monday, September 9th, 2013. These funds, which are in
addition to previous funds raised, will be used for the further
development of the 13-11 Milford Colony well.
In July, 2013, the Company first announced a potential joint
venture with Directional Drilling LLC for the drilling of the
Milford Colony project. To date the non-binding letter of intent
between the Company and Directional Drilling has expired and no
agreement has been reached. Directional has indicated that it
will continue to evaluate the potential partnership but without
committing to any timeline.
The Company also wishes to clarify prior disclosure made in
relation to its obligations under the Farm-out and Option agreement
with Summit West Oil, LLC regarding the South Sun River Bakken
Prospect on which the Milford Colony project is situated. In
order to earn a 100% working interest in the Sun River property
pursuant to the Farm-out and Option Agreement, Norstra must make
all lease renewal payment by December 20, 2013, and must complete
an aggregate of three horizontal wells with an estimated cost of
$5,000,000 each to be completed by June 30, 2014, December 31, 2014
and June 30, 2016, respectively. In the alternative, Norstra
may purchase the Farm-out lands by issuing 10 million shares of its
common stock to Summit West by December 31, 2013.
Glen Landry, CEO Commented: "We are extremely
happy to finally be able to actually start the real work. I have
personally worked with Faith in the past and can attest to their
remarkable knowledge, professionalism, and credibility.
"We are also quite pleased that this repeat investor has the
confidence in us to invest in us with such good terms. We continue
to keep an open dialogue with investors such as Directional
Drilling LLC and others as investment will be the key in this $4MM
- $5MM well."
The Company encourages all readers to call the toll free
Investor Relations number below with further questions. The company
also encourages readers to join our e-newsletter located on the
bottom left of the Company's website. Furthermore, we encourage all
readers to review the information regarding the company located at
http://www.otcmarkets.com/stock/NORX/company-info.
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 Company being able to finance or
complete the drilling of a well on any of the Company's exploration
properties. 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 financing
arrangements, exploration activities, potential oil production,
revenues, expansion efforts, 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, our prospective convertible
debenture, our planned exploration activities, 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: For further information regarding
Norstra Energy Inc., please contact:
Tyler Troup, B.Comm
Circadian Group Investor Relations
Phone: 1-866-865-2780
E-mail: ir@norstraenergy.com
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