By GlobeNewswire, October 04, 2013, 07:00:00 AM EDT
SPOKANE, Wash., Oct. 4, 2013 (GLOBE NEWSWIRE) -- NORSTRA ENERGY INC.WWW.NORSTRAENERGY.COM (PINKSHEETS: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 and Montana Sweetgrass Arch, is pleased to announce that it has purchased all renewals and new leases related to the 13-11 Milford Colony well. Norstra has paid a total of $170,000 to acquire all new leases and lease extensions for 5 years on the Colony lease totaling approximately 13,300 net acres.
Additional negotiations with Summit West have resulted in the assignment back to Summit of the State leases (12,988 net acres) in exchange for the following:
Norstra is no longer obligated to issue 10,000,000 shares to Summit West LLC as the aforementioned deal was struck directly with the property owners;
Norstra will issue 300,000 restricted shares to Summit West LLC, in exchange for Summit forfeiting all royalty overrides on the Milford Colony leases;
Summit will authorize a Change of Operator to Black Gold, LLC
Black Gold shall continue to manage the drilling and development operations for Norstra as was done by Summit. A total of 3,000,000 shares will be provided to Black Gold on a vesting/ earning basis over three years.
In summary, Norstra has consolidated its primary lease block, The Milford Colony, for an extended 5 year term by reassigning back the farmout rights to explore the State leases to Summit West LLC. In so doing, Norstra will have no further obligations to Summit West LLC. In addition Norstra will eliminate 6,700,000 shares of dilution and increase Norstra's Net Revenue Interest on much of the retained lands to 85% from 80%.
Glen Landry, CEO for Norstra, said: "We now control the entire lease block as we move forward on the development of the 13-11 Milford Colony well. There will be no time constraints (before 5 years), drilling obligations, or other requirements as we continue to raise funds to drill our well." He went on to say, "If we are successful on the first well we have a large number of additional locations where we can drill on this lease. We want to focus on this acreage in the future."
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, including among other items the Company's filings, 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.,
Tyler Troup, B.Comm
Circadian Group Investor Relations
Source: Norstra Energy Inc.