Norstra Operations Fully on Target to Set Surface Casing Next Month
17 June 2013 - 11:00PM
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."
Disclaimer
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: ir@norstraenergy.com
Website: www.norstraenergy.com
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