SOUTHLAKE, Texas, June 17, 2013 (GLOBE NEWSWIRE) -- NORSTRA ENERGY INC. WWW.NORSTRAENERGY.COM (OTCBB:NORX) (OTCQB:NORX) ("Norstra" or the "Company") is pleased to announce that the new location for the first well has been surveyed on the new 17,988 acre block and the 10 day notice and advertising period for issuance of the drilling permit will commence this week. The Company expects the permit to drill to be issued between July 1 to July 3. The location will be excavated after the holidays, but before July 11. The surface casing is scheduled to be set before July 18, depending on rig availability.
The well name is the:
13-11 Milford Colony
nwsw Section 11
Township 18N, Range 5W.
Lewis and Clark County, Montana
This planned well is located in a contiguous block approximately 3.5 miles east of the Krone well which was drilled by the Shell Oil Company.
Dr. David Lopez summarized the new drilling area as follows.
"The South Sun River Prospect is an exploration project with new acreage in the East ½ T. 18 N, R. 5 W, Lewis and Clark County, MT. This area is west of Great Falls, MT in the area of the leading edge of the Rocky Mountain Overthrust Belt. The Bakken Formation in this area is the southern continuation of the 'Canadian Bakken' farther north and continues into southwestern Montana where it is called the Sappington Formation. Several wells drilled in the area have Bakken sections very similar to the Bakken in the Williston Basin. The drilling depth in the prospect area is estimated to be about 8,800 ft."
"Based upon the data available to us, the reserve estimates for the South Sun River Prospect area was calculated on the log data from the two wells in closest proximity. The Shell-Krone #31-32 is immediately adjacent to the project area on the north (Section 32, T18N, 5W). The ARCO-Steinbach #1 is west of the project area (Section 22, T17N, R6W). Reserve estimates were calculated assuming that the middle member would be completed as the oil reservoir rock, and that there would be very low water saturation based on the high RT values. The estimates also assume that the reservoir quality in the Bakken will remain relatively constant across the prospect area. The Steinbach well has the thinnest section and was used as the low expected reserve estimate; porosity from this well is from a Sonic log. The Krone well has a thicker section and the best porosity and was used for the high expected reserve estimate. A conservative porosity of 12% for the Krone well was taken from the Neutron log; the very good SP response in this well confirms the presence of well-developed porosity, possibly greater than 12%. Reserve estimates are for total original oil in place (OOIP). The data used and reserves calculated are presented in the table below. The prospect expected reserve estimate of about 11.3 MMBO/section is based on an expected reservoir thickness of 19 ft in the prospect area."
Based upon the above findings by Dr. Lopez, the unproven recoverable reserves within the immediate lease block surrounding the drillsite are estimated to be approximately 45 million barrels of oil.
Glen Landry, the President and CEO of Norstra said, "We believe this area holds tremendous potential. The seismic displays a contiguous Bakken without faulting. It appears that the seismic displays a long thrust sheet that is not broken."
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 secure the surface rights agreement and drilling permit, secure sufficient financing for the drilling of the proposed well, as well as actually being able to complete the drilling of a well on 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 potential 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., please contact: Norstra Energy - Investor Relations Tyler Troup, B.Comm Phone: 1-866-865-2780 E-mail: firstname.lastname@example.org Website: www.norstraenergy.comSource:Norstra Energy Inc.