SOUTHLAKE, Texas, Sept. 10, 2013 (GLOBE NEWSWIRE) -- NORSTRA ENERGY INC. WWW.NORSTRAENERGY.COM (OTCQB: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/ Montana Sweetgrass Arch, is pleased to announce it has signed and completed a transaction with Faith Drilling (or "Faith") to set the surface casing of Norstra's first well, the 13-11 Milford Colony. Work on this first phase of the project has already commenced as Faith is already on location rigging up. Subsequent planned work phases include the completion of the 8,800 feet of vertical drilling followed by 5,280 feet (1 mile) of horizontal drilling which would incorporate a 10-12 stage frac.
The Company is also pleased to announce it has partially completed (pending receipt of the funds) a debenture financing for $250,000 which is convertible into common shares at a price of $0.50, which is a 67% premium to the market price at the close of trading on Monday, September 9th, 2013. These funds, which are in addition to previous funds raised, will be used for the further development of the 13-11 Milford Colony well.
In July, 2013, the Company first announced a potential joint venture with Directional Drilling LLC for the drilling of the Milford Colony project. To date the non-binding letter of intent between the Company and Directional Drilling has expired and no agreement has been reached. Directional has indicated that it will continue to evaluate the potential partnership but without committing to any timeline.
The Company also wishes to clarify prior disclosure made in relation to its obligations under the Farm-out and Option agreement with Summit West Oil, LLC regarding the South Sun River Bakken Prospect on which the Milford Colony project is situated. In order to earn a 100% working interest in the Sun River property pursuant to the Farm-out and Option Agreement, Norstra must make all lease renewal payment by December 20, 2013, and must complete an aggregate of three horizontal wells with an estimated cost of $5,000,000 each to be completed by June 30, 2014, December 31, 2014 and June 30, 2016, respectively. In the alternative, Norstra may purchase the Farm-out lands by issuing 10 million shares of its common stock to Summit West by December 31, 2013.
Glen Landry, CEO Commented: "We are extremely happy to finally be able to actually start the real work. I have personally worked with Faith in the past and can attest to their remarkable knowledge, professionalism, and credibility.
"We are also quite pleased that this repeat investor has the confidence in us to invest in us with such good terms. We continue to keep an open dialogue with investors such as Directional Drilling LLC and others as investment will be the key in this $4MM - $5MM well."
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 located at http://www.otcmarkets.com/stock/NORX/company-info.
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.