SPOKANE, Wash., Jan. 16, 2014 (GLOBE NEWSWIRE) -- NORSTRA ENERGY INC. WWW.NORSTRAENERGY.COM (OTCMKTS:NORX) ("Norstra" or the "Company"), a company poised to expand the excitement of the Bakken Shale oil deposit in North Dakota & Eastern Montana, westerly towards the geologically promising Rocky Mountain front of Lewis and Clark County, Montana, is pleased to announce they have entered into a Farmout Agreement (the "Agreement") with Super Nova Minerals (CNSX:SNP) (OTCMKTS:SNOVF) (the "Farmee" or "Super Nova"), a Vancouver, BC based Oil and Gas Exploration and Production company listed on the Canadian Securities Exchange (Click here for real-time level 2 stock quotes, company news and filings: http://cnsx.ca/CNSX/Securities/Mining/Super-Nova-Minerals.aspx ).
Under the terms of the agreement, Super Nova will have the ability to earn an 80% working interest in Norstra's entire Milford Colony project In Lewis and Clark County, Montana covering roughly 10,000 acres. Norstra will be carried through the project owning a 20% working interest, without any further obligations of contributing capital towards the drilling of any oil and or natural gas wells. Norstra will remain in control of managing the project's technical decisions in conjunction with their operator Black Gold.
Under the terms of the agreement, the entire project is divided among three "blocks" which are to be earned by the Farmee by paying for and drilling a single vertical well on each of these blocks, to first evaluate for shallower natural gas formations, then continue to an approximate depth of roughly 8,900 feet to evaluate the Bakken oil formation. After details are revealed about the formation and its potential, the project operator in conjunction with Norstra and the Farmee may elect to then undertake additional development such as horizontal well legs and fracking programs.
Details of the timeline and investment obligation by Super Nova to earn the three blocks are as follows:
|1) Block #1 – (80% WI; 64.4% NRI) to the Farmee if:|
|a) $25,000 is paid to Norstra within 30 days from signing the agreement, and;|
|b) $15,000 is paid to Norstra 60 days from this agreement, and every month thereafter for 9 months, with a balloon payment occurring on the 365th day or before for $210,000, and;|
|c) $1,015,000 is paid to Norstra to drill and evaluate the Bakken formation within 12 months.|
|2) Block #2 & #3 – (80% WI; 67.2% NRI) to the Farmee if:|
|a) $1,015,000 is paid to Norstra within 240 days of the completion of the well on block #1 to be used in drilling a Bakken targeted well on block #2|
|b) $1,015,000 is paid to Norstra within 240 days of the completion of the well on block #2 to be used in drilling a Bakken targeted well on block #3|
It has been brought to the Company's attention that there are multiple productive natural gas wells within 7 miles of the Company's Milford Colony prospect. The Norstra lands have since been re-evaluated by the company and Super Nova's 3rd party consulting engineers, which has confirmed potential for shallower formations containing natural gas, providing a "stacked" play with multiple opportunities within one hole for both oil and gas. There is also a natural gas pipeline within 3 miles of the spudded and cased Milford Colony 13-11 well providing crucial nearby infrastructure for the company's gas potential.
Norstra would also like to report they have closed a $150,000 financing, which in combination with the funds due to the company within 30 days and every month thereafter in connection with this farmout agreement, provides the company with sufficient working capital for the foreseeable future. The company also intends to utilize some of the funds not employed in drilling to acquire new drilling prospects within the US.
All Investors who have inquired about, and intended to inquire about the Company's special preferred share offering to accredited Investors are encouraged to reach out to the company to discuss certain changes that have taken place.
Glen Landry, CEO, Norstra Energy said:
"The Company is very excited about this partnership with Super Nova for several reasons. First and foremost we are impressed with the credibility the Canadian resource market brings to the deal, and although the mining sector has been somewhat stagnant of late, the energy sector continues to flourish and raise money. Raising money for this project on an organized exchange like the CNSX in contrast to the OTC "market" will alleviate many Investor objections and qualify many more institutional and individual investors to participate. Canadian listed energy deals continue to attract capital on the international circuit so having the CEO of our new partner Super Nova, Mr. Wolf Wiese who is fluent in German, will definitely expand our reach and be part of our collective strategy going forward.
"This transaction potentially transforms Norstra into an oil project generator and land holding company using third party financing to drill our wells—which is a strategy to limit Shareholder dilution—and can be very successful when properly executed.
"Having been relegated to the Greysheets of the OTC Market, without any further clarity from the SEC, this transaction provides the best option for effectively raising capital to develop our Milford Colony project. After 12 months has elapsed after our suspension, and without further inquiry by the SEC, Norstra would be eligible to submit form 15c-211 to become a fully quoted OTCQB security once again. The company has maintained all of its SEC reporting requirements since the suspension, and is anxious to the possibility of additional market support in the near future."
The company encourages readers to join our e-newsletter located on the bottom left of the Company's website. The Company also encourage 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."
ABOUT NORSTRA ENERGY
Through a continuously growing team of seasoned oil-patch technical experts, energy entrepreneurs and project finance experts, Norstra Energy looks to rapidly but methodically grow into a meaningful oil producer. Norstra is working towards expanding the excitement of the Bakken Shale oil deposit in North Dakota & Eastern Montana, westerly towards the geologically promising Rocky Mountain front of Lewis and Clark County, Montana. With lease rates in the Southern Alberta Bakken Fairway not yet feeling the inflationary pressures of the traditional Williston basin, but exhibiting similar geology, Norstra's business plan consists of drilling high probability wells within this up-and-coming area, with the goal of consistently increasing shareholder value.
In addition to exploring the "basin opening" opportunities of Western Montana, the Company's concurrent business plan is to acquire and develop near-term producing, lower risk oil & gas opportunities throughout the continental USA.
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: firstname.lastname@example.orgSource:Norstra Energy Inc.