|By Marketwired .||
|March 6, 2014 09:01 AM EST|
WINNIPEG, MANITOBA -- (Marketwired) -- 03/06/14 -- Donald Benson, President and CEO of Nordic Oil and Gas Ltd. ("Nordic") (TSX VENTURE: NOG), is pleased to announce the Company has acquired an average of 80% interest in 1,179 hectares of land from Quattro Exploration and Production Ltd. in the Noel, B.C. area.
The acquisition price of $300,000.00 was paid by issuance of 4,000,000 shares of Nordic Oil and Gas Ltd. to be issued from treasury at a deemed value of $0.05 per share, 1,000,000 warrants issued without par value and a promissory note in the amount of $100,000.00. The Closing date is March 5, 2014 and the effective date is November 1, 2013. The warrants are exercisable at any time during the next 24 months following the closing date at an exercise price of $0.05 per share. The promissory note bears interest at a rate of 8% annually payable quarterly.
In addition to the purchase price the vendor is extended a GORR of 2.5% on all production from the purchased property. The vendor can convert the royalty to a 25% working interest within 30 days of the election date being the date of a successful work-over of the existing well or the completion of drilling a new well or as extended by Nordic by paying 25% of the costs incurred to test or drill the well.
The transaction is subject to approval by the TSX Venture Exchange.
Also of note, Nordic has received an extension until June 30, 2014 to drill an earning well on the farm-in land at Noel that it announced on September 12, 2013. "The order of priority in drilling at Noel is this farm-in well," said Mr. Benson.
About Nordic Oil and Gas Ltd.
Nordic Oil and Gas Ltd. is a junior oil and gas company engaged in the exploration and development of oil, natural gas. The Corporation is listed on the TSX Venture Exchange and trades under the symbol NOG.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the contents of this News Release.