SOUTHLAKE, Texas, June 10, 2013 (GLOBE NEWSWIRE) -- NORSTRA ENERGY INC. WWW.NORSTRAENERGY.COM (OTCQB:NORX) ("Norstra" or the "Company") is pleased to announce that it has entered into a new Farmout and Option Agreement with Summit West Oil, LLC.
Under this agreement Norstra will have the right to earn additional 17,988,280 gross acres of the Bakken South Sun River Prospect. Norstra also has the right to purchase this land position for 10,000,000 million common shares from treasury. This option is for the sole benefit of Norstra and is open until December 31, 2013. The total land position available for Norstra is now close to 30,000 acres with an option to purchase a 100% interest in 60% of the optioned land without any drilling obligations.
Mr. Glen Landry, CEO, Norstra stated: "We are very pleased not only to have added significant land to our lease position, but to have done so on terms which will enable us to use the majority of our optioned land for potential finance opportunities. Norstra has received considerable interest from the investment community and several parties have shown an interest in debt investment with land collateral. Secured debt financing would most certainly reduce our long term financing costs.
"We have been eying this property for a long time and as soon as it was made available to us we jumped on it. During previous due diligence our geological and geophysical teams had already identified a very good drill location from the seismic on the first acreage block. The Phillips Pulse Line 21 and the QEP Line 83-4 were acquired for the initial drill site but extended well into the new acreage block. The seismic workup by Grundy and Associates on the new acreage displays an intact Bakken shale at approximately 8,800 feet. This information came from our existing inventory of seismic lines. We have deployed our surveyor and the initial stake has been set in the northeast of section 14, Township 18N, Range 5W.
"The well is planned to be drilled vertically to a depth of 8,800 feet with a horizontal leg of at least 5,400 feet. Norstra is still awaiting additional seismic data to further enhance the acreage. Due to our already existing data on this acreage, we have considered the possibility of drilling our first well on this land for some time as the location offers far less chance of fracturing. The well will be named the Milford Colony #1, our pad size design will be 400' by 300', and the operator for the first well already met with the land owners last week and we expect to have the surface use agreement in place this week. We are also applying for the drilling permit in the next few days and it should be available immediately after the 10 day advertising period under Montana law.
"As a result of the Farmout and Option Agreement, Norstra has increased its land holdings by 125%. The consistency of the thickness of the Bakken in the region suggests the Company may have doubled its reserve potential as well. Seismic information on the new leases places the Bakken at 8,800 feet, which is more than adequate for pressure to produce the oil and generate hydrocarbons from the source rock."
About Norstra Energy Inc.
Norstra Energy Inc., a US based oil and gas exploration company with interests in over 29,000 acres of prime Bakken formation land in Montana. The company is targeting the South Sun River Prospect for a Bakken drilling program proving the prospect up from exploration to production.
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 benefits conferred by the Farmout and Option Agreement with Summit West Oil, LLC, the availability of financing opportunities, the location, timing, and potential results of exploration and drilling work on the South Sun River Prospect. 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 financing, exploration, 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; 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., contact: Norstra Energy Investor Relations Tyler M. Troup, B.Comm Phone: 1-866-865-2780 E-mail: email@example.com Website: www.norstraenergy.comSource:Norstra Energy Inc.