Norstra Announces US Government Doubles Bakken Oil Estimates
SOUTHLAKE, Texas, May 13, 2013 (GLOBE NEWSWIRE) -- NORSTRA ENERGY INC.
WWW.NORSTRAENERGY.COM (OTCQB:NORX) ("Norstra" or the "Company") received a
major boost to its South Sun River Bakken Project in Montana when the US
Geological Survey (USGS) announced last week that they were doubling the
reserve estimate for the Bakken and Three Forks Formation in Montana, North-
and South Dakota. The USGS stated that the formations could contain an
"estimated 7.4 billion barrels of undiscovered, technically recoverable oil."
That's double the original 2008 estimate of 3.65 billion barrels. The USGS
also considers the Bakken and Three Forks to be the largest continuous oil
formation in the continental United States. This is the same oil formation
that Norstra is targeting on their lease holdings. Norstra would like to refer
to the USGS publication for the precise regional coverage of the new Bakken
and Three Forks estimates in comparison to their own lease holdings.
Dr. Don Van Nieuwenhuise, head of the geosciences program at the University of
Houston, said the USGS numbers are conservative and based on looking at "sweet
spots" within the formation. "There are chances there are sweet spots they
don't know about. The prospects of finding additional sweet spots in an area
this size is relatively high," he said. "I'm pretty sure every drop they say
you're going to find, you'll find."
John Harju, associate director for research with the Energy and Environmental
Research Center at the University of North Dakota, said he views the USGS
figure as the lower limit of the amount of oil that will be recoverable from
the Williston Basin. "Like any of these USGS estimates, think of them as a
milemarker that's well behind you in the rearview mirror… What this doesn't
even begin to recognize is the increase in technology that we're going to see,
" said Harju.
Also, Continental Resources, the largest leaseholder in the Bakken region,
believes the USGS estimate to be quite modest. "The USGS generally is very
conservative in their estimates," Harold Hamm, Chairman and CEO of
Continental, told NewsOK. In 2010, Continental Resources ^ estimated that the
Bakken field contains roughly 24 billion barrels of technically recoverable
oil out of 577 billion barrels of total oil in place. In 2012, Continental
boosted its total oil estimate by 56 percent, to 903 BBO, but has yet to
revise its recoverable estimates.
Norstra is currently reviewing existing technical data and is highly
encouraged by the new reserve estimate. In an interview with the Fairfield Sun
Times Mr. Landry, the CEO & President of Norstra Energy Inc., went into more
detail about the project. Landry explained one of the reasons that Norstra is
targeting the well known Bakken System, "Exxon, Arco, Oxy, Shell and others
were targeting below the Bakken in the 1980s. We have potential there, but
deeper exploration would be more of a 'wildcat'. We are targeting the Bakken
with a known blanket target with far less risk." Landry, a geologist with ties
to this area went on to explain the nature of the Bakken System along the
Eastern Slope of the Rockies, "If the Bakken is a fractured zone then we have
a higher risk play. Any oil migration thru a fractured play runs a risk of
flushing. Migrating oil may easily be flushed or trapped but is a far greater
risk than the resource play that we have. The Bakken is a source rock. We feel
the oil remained in place within the thrust sheets because of the high
resistivity present on the logs and the gas kicks where we have mudlogs."
Landry said that other formations holding oil potential are a result of
migration and are at risk of flushing. "A true resource play is oil sealed in
place. The high resistivity of the Krone and Steinback wells says the oil is
in place, hence a true resource play. The target zone should be overpressured.
A successful horizontal Bakken will have no fractures and we will make our own
fractures within the middle member."
The recent Fairfield Times article is available in its entirety below:
The release from the US Geological Survey is available in its entirety below:
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 timing of
exploration and drilling work on the South Sun River Prospect as well as the
resource estimates of the Bakken and Three Forks formation as well as the
company's prospect. 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 potential oil production, revenues, expansion
efforts, and 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, 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., please contact:
Norstra Energy - Investor Relations
Tyler Troup, B.Comm
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