As per this agreement, Nordic will receive an aggregate of $2,500,000 from Western Plains, consisting of $2.1m in cash and $400,000 of Class A Common Shares of Western Plain. Nordic will retain the other 50% interest in the company’s Lloydminster land holdings and heavy oil wells.
Donald Benson, president and CEO of Nordic Oil and Gas, said: “This is a deal of significant magnitude and importance for Nordic Oil and Gas. Firstly, it provides us with a much needed influx of capital which will allow us to move forward on numerous fronts.
“Secondly, we could not be more pleased to be associated and working with Western Plains, an experienced, competent and successful operator in the Lloydminster region.”
It is anticipated that Western Plains will commence bringing on the five new wells that Nordic drilled at the end of 2009 as soon as possible, resulting in almost immediate production.
In addition, Western Plains will also turn its attention to some of the maintenance issues facing Nordic’s other nine wells, meaning that all 14 wells are expected to be on full production in short order.
David Forrest, president and CEO of Western Plains Petroleum, said: “We are indeed excited at the opportunity of working with Nordic Oil and Gas Ltd in Lloydminster. Our strength has always been that of an operator and together, with Nordic’s strong land holdings in the area, I’m sure both companies will significantly benefit from this agreement.”
