Company Overview Norex Energy (Northern Explorations Ltd.) (OTC BB:NXPN) is an energy exploration Company currently developing natural gas assets across North America. The Company has acquired a majority working interest in two natural gas projects located in California which show the potential to contain up to 50 BCF of gas and in Alberta, Canada which has the potential to contain 8 BCF gas with associated plant, pipeline and existing infrastructure. Norex is dedicated to the acquisition, exploration and development of outstanding natural gas opportunities across the United States and Canada. In Feb 2009, a payment of $376,692 was made for the acquisition of a 50% working interest in two California gas projects in the Central Valley of California. Norex is now working with the operators towards finalizing the planning of the first 2 gas wells for the 2009 development program. Plans are set to drill the first well in June and the second in July. Another 2 wells are earmarked for development in 2010. Norex aims to benefit from what would be a very short pay out period for seismic, drilling and pipeline tie-in costs at the two wells targeted in its 2009 California Project. If proven to be commercially viable, this may represent a venture with an in-situ value of greater than $50 million in contained gas as a majority working interest partner. The company plans to provide shareholder value through the assembly of asset and property combinations which will include exploratory promise, ongoing production, in-place infrastructure, growth potential and the ability to offer both short term returns as well as significant value over the long term. Norex Energy’s portfolio is believed to be high quality prospects. Its Californian interests holds potential to bring to commercially viable 2,000-3,000 Mcfd natural gas production that could create a positive cashflow position by end of Q3 2009. Estimated costs of drilling and completing the 2 wells in its 2009 development project is approximately $2.1 million all in. Pipeline and tie-in infrastructure costs are estimated at $550,000, resulting in a total project cost of $2.65 million in the current financial year. With PG&E Citygate pricing near $4.96 and given Norex’ 78% NRI to the 100% WI, we expect thus 39% of all revenues to its 50% WI and an ROI of less than 1 year. Norex wants to enhance its portfolio of energy projects by entering into the wind energy sector by means of strategic acquisitions in Texas & Wyoming wind corridor.
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Northern Explorations Signs MOU to Acquire West Texas Natural Gas Interests
SCOTTSDALE, AZ -- Northern Explorations Ltd. (OTCBB: NXPN) ("Northern," "Norex" or the "Company") is pleased to announce it has entered into an agreement with Swiss-based resource management corporation Dominus Energy AG whereby Norex intends to secure a percentage interest of Dominus' working interest in a large, gas production play located in West Texas.
The Texas Gas Project currently consists of 22 existing production gas wells located adjacent to the town of Ozona in Crockett County, Texas. The project encompasses 12,900 acres and is a well documented and prolific location enjoying the presence of actively established companies such as Chesapeake, Devon, EOG, XTO, and Quicksilver Exploration.
Norex President, Mark Schaftlein comments, "We are very pleased to enter into this agreement. This addition to our portfolio is extremely positive and an excellent fit that will rapidly enhance our corporate goals towards becoming an innovative producer of clean energy solutions for America. We anticipate that we should be able to announce a formal purchase and sale agreement shortly. Further announcements will be made as quickly as they become available."
The Company is a reporting issuer which provides public disclosure under the Securities Exchange Act of 1934. Complete details of our agreements will be filed as required by law and made available to the public under the auspices of the Securities and Exchange Commission (SEC).
Posts: 267 | Registered: Feb 2009
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Location: South Eastern Alberta, Canada Land Holdings: 18 sections or 11,500 acres Interest: 49% initially, up to 51% over 2 years Potential # of Wells: 72 Proved + Probable: Over 8 Billion Cubic Feet Potential Value: $67 Million After Initial Development Timeline: 15 Wells planned
The Norex Energy Alberta Project targets one of the few undeveloped gas fields in Alberta. The area is extremely sensitive to leasing issues. As leasing negotiations are currently underway this will not currently identify specific areas or formations. Norex Energy has identified Hydrocarbon potential in 5 formations including one that has shown oil producing potential by an oil reserve in close proximity. Norex Energy aims to develop the land package and gas processing facility along with related pipeline infrastructure connecting to an EnCana hub. Norex Energy will then plans to execute drilling, recompletion and pipeline strategy to prove up over 8 billion cubic feet of Natural Gas. The Asset includes:
One Natural Gas Processing Plant built in 2004. Processes sour gas by non regenerative solution, sweet gas compression, metering, and water storage. Five Natural Gas Pipelines Six inch pipeline connects to EnCana trunk line and extends towards a three well tie-in. Eighteen Sections of land or approximately 11,500 acres containing recoverable reserves in excess of 8 billion cubic feet. Three-well farm-in with a Canadian major to bring on-line approximately 2000 Mcf/day of Natural Gas. An Opportunity to earn up to a 75% Net Revenue Interest in the wells before payback and a 50% net revenue interest after payback. One of these wells is planned for tie-in during the first phase of project development.
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Location: Sacramento County, CA Analog Fields Merritt Island (5.6 BCF), Snodgrass Slough (4.6 BCF) Land Holdings 668 gross acres under lease Interest 50% Working Interest Formation: Upper Cretaceous, Winters Depth of Test: 8,300 ft. Depth of Target Interval: 7,900+/- ft. Recoverable Reserves: 8 BCF Gross Pay Interval: 20 ft. Drainage Area: 400+ acres BTU Value: 930 BTU Recovery Factor: 1,000 Mcf / Ac ft Projected Initial Production Rate: 5,000 Mcf / day Pipeline Access / Connection Point ¼ mile to meter station
Norex Energy has acquired a 50% working interest in the Randall Island Prospect which is located approximately 20 miles south of the city of Sacramento along the Upper Cretaceous Winters "Eastside Stratigraphic Trend" of the southern Sacramento Valley.
Winters sandstones are one of the most prolific gas reservoirs in the Sacramento Valley, accounting for over 400 Bcf of gas produced to date along this trend. Winters sands are deep-water sands with gas fields and pools stratigraphically trapped along their eastern depositional edge. The traps are primary stratigraphic traps formed either by channels shaling out up dip into coeval slope shales or by sands shaling out up dip over structural noses. Many of the structural noses are compaction anticlines formed by drape over deeper thick Winters channels.
Detailed mapping of individual Winters sands indicate that many sands trend westerly into the basin perpendicular to depositional strike and compaction anticlines are present over many of the thicker sands. As an example, the Snodgrass Slough gas field is trapped gas caused by the shale out of Winters "Upper Clarksburg" sands across the southwest plunging of an anticlinal nose. The nose was formed by the rapid lateral shale out of the deeper "Main" Winters sand. Over 4.6 Bcf of gas was produced from this ~200-acre closure.
The Randall Island Prospect is located approximately two miles northwest of production at Snodgrass Slough. The trap is very similar to that at Snodgrass Slough. The same "Upper Clarksburg" sands that are the reservoirs at Snodgrass Slough form another potential stratigraphic trap when they intersect another southwest plunging nose. This nose is formed by a third thick Winters sand channel, the "Wurster" sand, which stratigraphically lies between the "Main" Winters and the "Upper Clarksburg" sands.
Critical control wells are the VERN JONES "Jonson" # 1 and #2 wells, located about 3000 feet apart in the western half of the Section. Seventy feet of "Upper Clarksburg" sand is present in the Jonson #2 well and is absent up dip in the Jonson #1 well. To the west of these wells, a broad southwest-plunging anticlinal nosing is present, formed by the thick underlying "Wurster" channel. A potential 400 acre stratigraphic closure is present where the shale out of the "Upper Clarksburg" sand intersects the nose. Based on the potential 400-acre closure, an average of 20 feet of pay and a recovery factor of 1000 Mcf/ac-ft., recoverable reserves are estimated at 8.0 Bcf of gas. This compares favorably with the 4.6 Bcf of gas produced from the ~200-acre closure at Snodgrass Slough.
Mapping also indicates shallower Winters sands, the "Jonson" sands, may be prospective at Randall Island in a stratigraphic closure similar to that mapped for the "Upper Clarksburg" sands. Additionally, a small NNW-SSE trending normal fault may enhance trapping in the Prospect. This east-dipping fault trapped minor "Main" Winters gas two miles north of the Prospect at the Merritt Island gas field in a small structural closure. Displacement on this fault is estimated at -25 feet.
Norex Energy plans to participate with the operator in the drilling of an 8,300 foot well required to test the Prospect through all prospective Winters sandstones.
Posts: 267 | Registered: Feb 2009
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Norex Energy recently announced that the Company will acquire petroleum related assets in Alberta, Canada that include a 49% interest in a natural gas processing and compression facility; natural gas pipeline, additional infrastructure and certain lands associated to the infrastructure. This project has been found to have the potential to contain over 8 BCF of natural gas. The Company also has the option to obtain the remaining 51% interest from the owner over a 2 year period.
The most significant component to the acquisition and overall project development will entail the gas processing plant which was originally constructed in 2004. The plant is capable of processing sour gas by a regenerative solution, as well as sweet gas compression, gas metering and water storage. The facility is a strategic key element to the downstream production of gas from the pipeline.
Norex also acquires a network of 5, six-inch natural gas pipelines that connect to a major trunk line operated by Encana and that extend out towards three gas wells ready for tie-in. The final permitting application process and licensing of the plant will be completed shortly, allowing Norex to put the project on line and to commence production. Further details will be announced as they become available.
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Mark Schaftlein | President & C.E.O. Mr. Schaftlein has been in the consulting and financial services business for the past 20 years. Since July 2000, Mr. Schaftlein has been the Chief Executive Officer of Capital Consulting Inc., a financial consulting and advisory firm and a Consultant with Ocean Avenue Advisors, LLC and IW Miller Group Inc. He served as President and Chief Executive Officer of Westmark Group Holdings Inc., from May 1997 until 2000. Through Ocean Avenue Advisors LLC, Mr. Schaftlein further provided consulting services to Ortec International. He served as Chief Financial Officer of Far East Energy Corp., since November 10, 2003. Prior to starting Capital Consulting Inc., and joining Ocean Avenue Advisors, LLC Mr. Schaftlein spent 18 years in financial services and mortgage banking with Citigroup as well as serving in various executive management positions with various publically traded companies. Mr. Schaftlein is a graduate of Western Kentucky University with a Degree in Business Administration in 1980.
David Naylor | Director, Chief Financial Officer David Naylor is a financial management professional with extensive accounting expertise and a highly analytical ability to improve management practices. His career includes eleven years leading a large media publishing company through a period of change. Subsequently, he has held the position of CFO and/or Secretary Treasurer for varied natural resource juniors as well as technology sector companies. Mr. Naylor is a Certified Management Accountant (CMA) with over twenty years of experience
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We believe that natural gas could well prove to be the energy source of choice for the new U.S. administration's energy policies as identified and supported by renowned energy developer T. Boone Pickens who states in his well-publicized "Pickens Plan" that natural gas is a cheap new replacement for foreign oil. Natural gas is our country's second largest energy resource and a vital component of our energy supply. 98% of the natural gas used in the United States is from North America. But 70% of US oil is purchased from foreign nations. Natural gas is one of the cleanest, safest and most useful forms of energy -- residentially, commercially and industrially. The natural gas industry has existed in the United States for over 100 years and continues to grow. Domestic natural gas reserves are twice that of petroleum. And new discoveries of natural gas and ongoing development of renewable biogas are continually adding to existing reserves. While it is a cheap effective and versatile fuel, less than 1% of natural gas is currently used for transportation
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Northern Explorations Details Interest in Ozona Project, West Texas Natural Gas Play
SCOTTSDALE, AZ--(MARKET WIRE)--Jun 1, 2009 -- Northern Explorations Ltd. (OTC BB:NXPN.OB - News) ("Northern," "Norex" or the "Company") is pleased to announce further details of the agreement on the "Ozona Gas Project," to be executed with Swiss-based resource management corporation Dominus Energy AG.Norex is negotiating a 63% Working Interest in the project located near Ozona in Crockett County, Texas. Under the terms of the underlying agreement with the vendors, Norex will receive a 47.5% Net Revenue Interest in all natural gas production from the project.
The project encompasses 9,000 acres and is a well documented and prolific location enjoying the presence of actively established companies such as Chesapeake, Devon, EOG, XTO, and Quicksilver Exploration. Norex and partners will further detail the program following completion of the requisite documentation which will involve the drilling, completion and tie-in of 20 natural gas wells.
Norex CFO David Naylor comments, "We are very pleased to negotiate such a considerable Net Revenue Interest in this outstanding gas play and will be moving forward quickly to becoming cash flow positive by rapid acceleration of field operations. We believe that Norex can meet the drilling schedule as proposed by the operator of up to 2 wells per month which should provide us the operational cash flow towards fully exploiting the prospect."
The Company is a reporting issuer which provides public disclosure under the securities and exchange act of 1934. Complete details of our agreements will be filed as required by law and made available to the public under the auspices of the Securities and Exchange Commission (SEC).
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Northern Explorations Executes Acquisition of West Texas Natural Gas Play On Monday June 1, 2009, 5:19 pm EDT Related:Northern Explorations Ltd. SCOTTSDALE, AZ--(MARKET WIRE)--Jun 1, 2009 -- Northern Explorations Ltd. (OTC BB:NXPN.OB - News) ("Northern," "Norex" or the "Company") is pleased to announce that the Company has now completed the execution of a definitive agreement in regards to the "Ozona Gas Project" with Swiss-based resource management corporation Dominus Energy AG.
Under the terms of the agreement, Norex has acquired a 63% Working Interest in the project located near Ozona in Crockett County, Texas. The agreement is based on future commitments whereby Norex will pay 100% of the cost of drilling and completion of the gas wells in exchange for their 63% Working Interest. Under the terms of the underlying agreement with the vendors and royalty holders, Norex will receive a 47.5% Net Revenue Interest in all natural gas production from the project.
This news is a welcome announcement given that the commodities markets have responded as world stock markets rallied and investors banked on hopes that the global recession is easing. Norex believes that the prices for natural gas will continue to increase as the economy continues to show signs of recovery.
The Ozona project encompasses 9,000 acres and is a well documented and prolific location enjoying the presence of actively established companies such as Chesapeake, Devon, EOG, XTO, and Quicksilver Exploration. Norex and partners will further detail the program following completion of the requisite documentation which will involve the drilling, completion and tie-in of 20 natural gas wells.
The Company is a reporting issuer which provides public disclosure under the securities and exchange act of 1934. Complete details of our agreements will be filed publicly where subject to and as required by law under the auspices of the Securities and Exchange Commission (SEC).
ABOUT NOREX ENERGY (NORTHERN EXPLORATIONS LTD.) (OTC BB:NXPN.OB - News)
Norex Energy (Northern Explorations Ltd.) is an energy exploration Company currently developing natural gas projects across North America. The Company has acquired a majority working interest in natural gas assets located in California and Alberta, Canada which have the combined potential to contain 16 BCF gas along with associated plant, pipeline and infrastructure.
Posts: 267 | Registered: Feb 2009
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This P&D crashed FASTER than GM .30 to .18 in 28 min. on under 500,000 shares. I wonder if that's a record for a penny that was touted in 4 or 5 "Newsletters"? I knew I should have gotten out yesterday - I just need to leaarn how to play the game and stick to the rules. Making $200 would have been better than losing $600
Posts: 2793 | From: Coral Springs, FL, USA | Registered: Aug 2003
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MORE "News". May this sucker rise 50% tomorrow! HAHA - Hey -this was pumped and dumped like a sub-penny. I was surprised. Even NXG tanked from $2.42 to $2.12 today. I got back into that one at $2.15 You never know with these stocks.
Posts: 2793 | From: Coral Springs, FL, USA | Registered: Aug 2003
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Thanks NOREX - Keep pumping this pig so I can get back to even. Imagine dropping from .30 to .18 in less than 30 min? You'd think it was a sub-penny.
Here's hope for tomorrow:
Northern Explorations Acquires First Production Gas Well at Ozona Project, West Texas
SCOTTSDALE, AZ -- (MARKET WIRE) -- 06/03/09 -- Northern Explorations Ltd. (OTCBB: NXPN) ("Northern," "Norex" or the "Company") is pleased to announce that the Company has acquired its first gas well at the Ozona gas project, Crockett County, Texas as part of its acquisition agreement with Dominus Energy AG .
The gas well is included as part of the package acquired at the Ozona Project by the Company and provides Norex with a current producing asset with daily gas production sales. Northern Explorations d.b.a. Norex Energy is therefore in production at Ozona.
The natural gas well was drilled, cased, completed and stimulated in the Wolfcamp Canyon Sandstone Formation. Upon tie-in to the pipeline infrastructure, the well has been producing gas since May of 2009 at daily rates of 200 MCF per day.
Estimates of gas reserves associated with this well are approximately 0.5 BCF. The gas is sold under a purchase agreement with Eagle Rock Energy and is currently priced at a bid-week production price of $4.04 per MCF.
This initial well is the first of 20 wells that will be drilled and completed on the leased acreage. Further details will be announced to stakeholders regarding the timing of the on-going development plan at the Ozona Project .
Norex President Mark Schaftlein states, "The inclusion of the production well in the purchase package acquired by Norex is a huge boost as it immediately transforms us into a cash flow positive position. We have effectively sidestepped the time line that normally occurs during the development of a first well of a program. Having acquired immediate gas production is a large step forward for the Company."
About the Ozona Gas Project :
The project encompasses approximately 9,000 acres and is a well documented and prolific location enjoying the presence of actively established companies such as Chesapeake, Devon, EOG, XTO, and Quicksilver Exploration. Norex is currently producing gas at Ozona. Norex has acquired a 63% Working Interest in the project located near Ozona in Crockett County, Texas. Under the terms of the underlying agreement with the vendors, Norex will receive a 47.5% Net Revenue Interest in all natural gas production from the project.
ABOUT NOREX ENERGY ( NORTHERN EXPLORATIONS LTD. ) (OTCBB: NXPN)
Norex Energy ( Northern Explorations Ltd. ) is an energy exploration Company currently developing natural gas projects across North America. The Company has acquired working interests in natural gas assets located in Texas as well as projects in California and Alberta, Canada. The projects contain documented gas reserves and associated plant, pipeline and infrastructure currently in place.
Notice Regarding Forward-Looking Statements
This news release contains "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. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our properties and any anticipated future production. 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 petroleum exploration and development stage exploration companies. 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 annual report on Form 10-KSB for the most recent fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission .
ON BEHALF OF THE BOARD Norex Energy ( Northern Explorations Ltd. )
Mark Schaftlein President, CEO
To find out more about Norex Energy or Northern Explorations Ltd. (OTCBB: NXPN), visit our website at www.norexenergyinc.com .
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Information: 1-(866) 570-9822
Northern Explorations Ltd.
Posts: 2793 | From: Coral Springs, FL, USA | Registered: Aug 2003
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The Company has been informed by the operator that they are now in receipt of the required environmental permits from both the Province and local regulatory authorities thereby allowing for the commencement of pipeline construction.
On January 14th, Norex announced that the Company will acquire petroleum related assets in Alberta, Canada that include a 49% interest in a natural gas processing and compression facility; natural gas pipeline, additional infrastructure and certain lands associated to the infrastructure. This project has been found to have the potential to contain over 8 BCF of natural gas. The Company also has the option to obtain the remaining 51% interest from the owner over a 2 year period
Posts: 3257 | From: usa | Registered: Nov 2008
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short term looks like an easy double here, long term could mean dollars for some, i'm liking what i see here
Posts: 3257 | From: usa | Registered: Nov 2008
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Not moving at all on news..... Everybody's probably watching Eddie Bauer take their money..
Posts: 2793 | From: Coral Springs, FL, USA | Registered: Aug 2003
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i see a lot of potential here long term, may have to throw some major cash in here
Posts: 3257 | From: usa | Registered: Nov 2008
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Getting a boost from several paid IR / PR firms. O T C R E P O R T E R . C O M " Morning Stock ALERTS " have been hot lately. Could move this morning .... imho
-------------------- " Cash is King " Posts: 1102 | From: NJ | Registered: Mar 2006
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