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Nordic Oil and Gas acquires coal leases in Drumheller, AB |
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Written by REM
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WINNIPEG, MB. - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. announced recently that the Company, in conjunction with its joint venture partner, Western Warner Oils Ltd. has acquired 3,856 hectares (9,528 acres) of coal leases located at Drumheller, Alberta. An independent consulting company has determined that the leases contain approximately 54,000,000 recoverable tonnes of coal.
“Preliminary evaluation of the mining potential of this property conducted by Norwest Resource Consulting Ltd. historically concluded the total calculated in place coal was 95,951,031 tonnes with 53,905,623 tonnes potentially recoverable,” Benson stated. “As we have just acquired these leases, we have not as yet had a qualified person do sufficient work to classify the historical estimates as current mineral resources and therefore the historical estimates should not be relied upon.”
The project was introduced to Nordic by Western Warner, which controlled the leases for approximately 20 years. During that time, Western Warner undertook extensive exploration initiatives, which were conducted by HudBay Coal Company, who had farmed in to the project. This included drilling, logging and coring of 160 holes. HudBay was subsequently taken over by Dome Petroleum, however the leases were in turn sold to Trans Alta. In 1986, Trans Alta paid a penalty and returned the leases to Western Warner.
Australia’s Macquarie Bank stated on April 27, 2009 that it was forecasting an average market price for world thermal coal of $60/ton, which is down sharply from the $121 average price in 2008.
"This represents a very exciting new opportunity for the Company, and we look forward to determining how best to develop these resources,” Mr. Benson added.
www.nordicoilandgas.com
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