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Nordic Oil and Gas Announces 2013 Q3 and Nine Month Financial Results. Company also Announces New Flow-Through Offering

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By Accesswire

WINNIPEG, MB. (NOVEMBER 22, 2013) — Nordic Oil and Gas Ltd. (TSXV: NOG), today announced the Company’s financial results from operations for its third quarter and nine months ended September 30, 2013. All amounts referenced herein are in Canadian dollars.

Financial Results

Revenue from oil and natural gas sales (including liquids and transport revenue) during the third quarter of 2013 totaled $66,241 down from the $145,033 reported during Q3 of 2012. The primary reason for the decrease in revenue for the quarter was the fact that the Company’s natural gas prices continued to languish, and several of the Company’s gas wells at Joffre, Alberta remained shut-in, resulting in the fact that minimal revenue has been forthcoming from that area. In particular, revenue from the Company’s 11-13 well has been negligible as a result of the damage to the formation caused by the regulators when they began the abandonment of the well.

Nordic had anticipated production from this well of a minimum of 500 MCF/day, which would have resulted in additional gross revenue of $135,000 for the quarter. When testing after the well was drilled, indications suggested that the well had the capability of producing as much as 1,000 MCF/day of gas. The Company plans to re-enter the well and side step the damage, or alternatively drill a twinned well on the lease.

In addition, the Company’s oil wells in Lloydminster were shut-in during the quarter, and its gas well had minimal production.

On a year-to-date basis, production revenue for the nine months ended September 30, 2013 totaled $226,573, as opposed to $667,956 for the same period in 2012. Again, the revenue decrease for the year-to-date is due to the fact that several of the Company’s heavy oil wells at Lloydminster and natural gas wells at Joffre have been shut-in during various times of the year, due to economic reasons, thereby significantly depleting revenue for the first three quarters of 2013.

Total assets, including cash, short-term investments, accounts receivable, property and equipment and other assets (deposits), for the period ended September 30, 2013 were $10,686,747, down from $13,917,136 at September 30, 2011, and down slightly from the December 31, 2012 total of $10,750,594. The primary reason for the decrease in assets year-over-year was the decrease in intangible exploration assets from $7,676,365 to $3,607,829.

The net comprehensive loss for the three months ended September 30, 2013 before income taxes was ($142,948), compared to a loss of ($146,204) recorded during the same period a year ago. When applying the deferred taxes of ($25,811) for the current period, the loss becomes ($117,137), versus a loss of ($133,436) for the third quarter of 2012. Year to date, the net comprehensive loss before taxes was ($528,632) versus a loss of ($563,364) for the first nine months of 2012.When applying deferred taxes, the year to date loss for 2013 was ($410,987), compared to a loss of ($497,038) for the first nine months of 2012.

The decrease in the Q3 2013 loss and the year-to-date loss can be attributed to a reduction in depletion, amortization and impairment which fell to $56,905 for the first nine months of 2013 compared to $148,132 for the same period a year ago. General & Administrative expenses were also down when compared to last year at $339,823 compared to $402,844 in 2012.

Nordic Announces New Flow-Through Offering

In other news today, Mr. Benson announced that the Company will be undertaking a new non-brokered private placement offering (the "Offering") of up to 20,000,000 units ("Units") at a price of $0.05 per Unit for gross proceeds of up to $1,000,000. Each Unit of the Offering will consist of one Class A common share of the Company issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) and one Class A common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to purchase one regular Class A common share of the Company at a price of $0.05 per share for a period of 60 months from the date of issuance.

The securities issued pursuant to the Offering are subject to a four-month hold period from the date of issuance. The Company anticipates multiple closings of the Offering in the coming weeks.

Certain finders are expected to assist the Company by introducing potential subscriber(s) to the Offering and, subject to compliance with applicable legislation, will be entitled to receive fees equal to up to 10% of the purchase price of the Units sold pursuant to the Offering, as well as compensation warrants (the "Finder’s Warrants") equal to up to 10% of the number of Units sold pursuant to the Offering. Each Finder’s Warrant shall entitle the holder thereof to purchase one regular Class A common share of the Company at a price of $0.05 for a period of 60 months from the date of issuance.

On November 21, 2013, the Company announced a substantial acquisition in Noel, BC; the Company intends to concentrate its efforts in this highly profitable area and will contemplate the shut-in of un-profitable production and will consider the sale of those assets.

The closing of the Offering is subject to the final approval of the TSX Venture Exchange.

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 and Coal Bed Methane in Alberta and Saskatchewan. The Corporation is listed on the TSX Venture Exchange and trades under the symbol NOG. Nordic was one of the "2008 TSX Venture 50" companies, a ranking of the top 10 public venture capital companies in five industry sectors listed on the TSX Venture Exchange.

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploration and drilling success, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Corporation’s management on the date the statements are made. The Corporation undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.

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.

For additional information, contact:

Don Bain

Corporate Secretary

Nordic Oil and Gas Ltd.

Tel. 204-943-1810

Fax. 204-943-1829

E-mail: dbain@nordicoilandgas.com

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