SOUTHLAKE, Texas, July 22, 2013 (GLOBE NEWSWIRE) -- NORSTRA ENERGY INC. WWW.NORSTRAENERGY.COM (OTCQB:NORX) ("Norstra" or the "Company") received a status report from Summit West, the operator for the 13-11 Milford Colony. The cash drilling bond has been secured from Yellowstone Bank of Billings, Montana and approved by the Montana State Board of Oil and Gas. Summit should have the permit to drill today, provided a survey of the horizontal well terminus point is provided by the surveyor. The survey portion of the permit remains incomplete without this information.
The survey, bond, and permit will be posted on the Norstra website upon completion.
The Company's Quarterly Report 10-Q has also been finalized and should be filed this week.
All dirt work has been completed for the drillsite. The drilling company, Gasco Drilling, has one more well to drill ahead of the proposed well by Norstra Energy. The best estimate for rig mobilization is around July 29. Care will be taken to try to drill with air to get some evaluation of possible shallow gas deposits.
A number of parties have restarted discussions regarding an investment into Norstra through shares or convertible debentures to finance operations moving forward. The Company is encouraged by this and is looking forward to updated termsheets.
In addition to being open to financing its operations through stock subscription and convertible debentures, Norstra has signed a Letter of Intent with Directional Drilling, LLC, for the purpose of joint venturing the drilling of the first horizontal Bakken well. The main incentive for our proposed Joint Venture partner to drill is based upon direct equity earned in the initial well and the acreage offsetting the first well. The detailed terms of the deal will be filed on an 8-K once a definitive agreement is finalized and signed. There is a review period until August 30, 2013 for both parties to come to an agreement over the detailed terms and conditions regarding the interests in the first and subsequent wells and also on the amount of acreage earned through drilling.
Glen Landry, Norstra's CEO, said, "This joint venture approach is the way I got most of my projects drilled over the last 35 years. We are very encouraged and hopeful that this Joint Venture will come to fruition as we came to a quick agreement and understanding as to Norstra's exploration and drilling strategy during our meetings at the first drill location". Landry went on to say, "We have also reserved the right, during the next thirty days, to accept any subscription agreement we want to the further secure funds for drilling and operations."
Norstra and its management are also currently complying with information requests by the SEC and are addressing their questions while continuing with their efforts to get the drilling started.
Forward-Looking Statements
This news release may contain "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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, including but not limited to, the Company's ability to come to a definitive agreement on the joint venture, raise additional capital and drill the proposed well. Forward-looking statements include, but are not limited to, statements regarding the cost and availability of labor, water, utilities, and other materials in relation to our proposed drill site.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of minerals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.