SPOKANE, Wash., June 25, 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 an agreement with BNV Energy (or "BNV") of Houston, Texas which requires BNV to drill two (2) natural gas wells on the Company's Milford Colony lands in Northwest Montana. The agreement also requires BNV to construct a gas gathering system which will collect natural gas for the wells, and feeds it to the 16" Northwestern Energy pipeline close by the project.
The total AFE cost the new partner will be required to spend for the drilling and gathering is approximately $1,500,000.00 US dollars. Under the terms of the agreement, by performing the aforementioned work programs by September 30th, 2014, BNV earns a 60% working interest in roughly 5,382 acres of the Milford Colony lands which is to be directly contributed by Norstra's other JV Partner, Super Nova Petroleum of Vancouver, B.C. Super Nova will retain a 20% working interest in these lands and maintain a 80% working interest in the remaining 4,618 acres balance originally farmed out from Norstra to Super Nova in January 2014. BNV will endeavor to drill both wells by September 30th, 2014, but may have this time extended, only for the second well, to June 15th, 2015 if unanticipated delays occur.
Under the Agreement, Norstra's working and net revenue interest stays unchanged, and will remain a "carried" 20% working interest. This means the company, under the current agreements, will not have to give up any ownership interest or contribute any financial investment towards the project, but will maintain a constant 20% working interest.
In consideration for the multiple direct and indirect benefits to Norstra under this deal, the company has agreed to issue BNV 4,000,000 warrants to purchase Norstra stock for $0.125 for the first year and $0.15 in the second year. BNV will only receive these warrants upon deposit of $400,000 in a drilling escrow account.
Glen Landry, CEO, Norstra Energy said:
"The more and more we do a regional evaluation of the rocky mountain front where we are, the more and more were seeing a case for proving up a natural gas 'province' or 'mountain front' in the area. The company along with the oil and gas technical experts at BNV have poured over all the data we could get our hands on, and have mapped many high intrigue traps and structures we want to target right away.
"We were and are a Company very interested in the deeper oil in the Bakken formation, but the potential natural gas in Lewis and Clark County cannot be ignored with its several hundred feet of pay through two separate sand formations reaching depths of almost 5,000 feet.
"The Company continues to entertain other offers and interest from potential partners and Investors to deepen our partially drilled Milford Colony 13-11 well to ultimately test the Bakken formation at approximately 8,800 ft. Norstra is still very positive on the economic potential of the Bakken formation which blankets our entire prospect."
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 mountain front, 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 "mountain front 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 technical research and investigation, 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.