Norstra Energy Consolidates Lease Obligations: Makes Final Lease Payment on Colony Lands
October 04 2013 - 7:00AM
NORSTRA ENERGY INC. WWW.NORSTRAENERGY.COM (PINKSHEETS: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 and Montana Sweetgrass Arch, is pleased to announce
that it has purchased all renewals and new leases related to the
13-11 Milford Colony well. Norstra has paid a total of $170,000 to
acquire all new leases and lease extensions for 5 years on the
Colony lease totaling approximately 13,300 net acres.
Additional negotiations with Summit West have resulted in the
assignment back to Summit of the State leases (12,988 net acres) in
exchange for the following:
- Norstra is no longer obligated to issue
10,000,000 shares to Summit West LLC as the aforementioned deal was
struck directly with the property owners;
- Norstra will issue 300,000 restricted shares to Summit West
LLC, in exchange for Summit forfeiting all royalty overrides on the
Milford Colony leases;
- Summit will authorize a Change of Operator to Black Gold,
LLC
Black Gold shall continue to manage the drilling and development
operations for Norstra as was done by Summit. A total of
3,000,000 shares will be provided to Black Gold on a vesting/
earning basis over three years.
In summary, Norstra has consolidated its primary lease block,
The Milford Colony, for an extended 5 year term by reassigning back
the farmout rights to explore the State leases to Summit West
LLC. In so doing, Norstra will have no further obligations to
Summit West LLC. In addition Norstra will eliminate 6,700,000
shares of dilution and increase Norstra's Net Revenue Interest on
much of the retained lands to 85% from 80%.
Glen Landry, CEO for Norstra, said: "We now
control the entire lease block as we move forward on the
development of the 13-11 Milford Colony well. There will be no
time constraints (before 5 years), drilling obligations, or other
requirements as we continue to raise funds to drill our well." He
went on to say, "If we are successful on the first well we have a
large number of additional locations where we can drill on this
lease. We want to focus on this acreage in the future."
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, including
among other items the Company's filings, 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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