Norwood Resources Ltd.
TSX VENTURE : NRS

Norwood Resources Ltd.

October 29, 2007 13:58 ET

Norwood Resources Ltd.-Independent Petrophysical Analysis of the Las Mesas & San Bartolo Wells and Seismic Mapping Have Confirmed Abundant In-Place Oil on the Oklanicsa Concession

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 28, 2007) - Norwood Resources Ltd. (the "Company") (TSX VENTURE:NRS) announces that the Company has received an independent evaluation of the well logs from both San Bartolo and Las Mesas conducted by Fronterra Geosciences of Houston, Texas. Integrating wire-line log data, core analysis, core petrography (XRD and SEM), LPSA ("laser particle size analysis"), mud log data and DST data, low resistivity / low contrast pay intervals have been identified corresponding to the DST intervals where oil was recovered in both Las Mesas and San Bartolo. These intervals were not originally recognized in the previous petrophysical analysis as pay. The independent report by Fronterra Geosciences summarizes pay as follows:



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Well Net Pay Porosity Permeability Water Saturation
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(ft) (%) (mD) (%)
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Las Mesas 193.8 11.2 12.0 26.4
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San Bartolo 272.3 11.3 11.0 36.0
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The report confirms formation damage in many of the intervals especially in Las Mesas where the borehole was open longer before logging. Some environmental effects due to wash outs and break outs make these and previous calculation subject to errors, however these analysis have incorporated and recognized the presence of clays in the sands and accounted for at least some of its effects on the resistivity measurements.

The Company has also completed re-mapping of the Brito formation markers incorporating synthetics from the well logs. This work has reconfirmed the presence of structural closures of significant size relating to both the San Bartolo and Las Mesas locations, although the Las Mesas location now appears to be structurally lower than originally thought. This exercise indicates the possibility of combined structural and stratigraphic trapping mechanisms. Fourteen prospects have been identified (7 new) ranging in size from 5600 closure acres to 500 closure acres. Based on the 30-foot pay interval identified by DST No.7 in the San Bartolo well and not considering any of the other identified pay intervals, the Company has completed an internal volumetric resource calculation ('Prospective Resource'). For all prospects, the total estimated potential in-place volume is 439 MM BBLS with a potential recoverable volume of 66 MM BBLS (using 15% recovery factor). For the individual prospects, the potential in-place volume range is from 118 MM BBLS to 10 MM BBLS.

Management cautions shareholders that these resource estimates do not currently qualify as reserves under National Policy NI 51-101. David Klepacki, a qualified person and a senior geophysicist with the Company, provides these estimates. "Prospective resources (as defined by the COGE Handbook) are those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations. If discovered, they would be technically and economically viable to recover."

The next phase of exploration is being designed with the objective of achieving and measuring sustained commercial production rates from this reservoir. This will allow for an accurate calculation of reserves from all of the potential pay zones identified which will be prepared by an independent qualified reserves auditor.

The Company has further received an oil analysis report from Baseline Resolution, Inc. of Woodlands, Texas, which included API gravity, high resolution whole gas chromatography (GC), MPLC separation for saturate and aromatic fractions and gas chromatography / mass spectrometry. The report based on three oil samples from three DST recoveries (one from Las Mesas and two from San Bartolo) is between 32 and 34 API gravity normal oils. These oils were derived from Tertiary age mixed organic (Type 1, II, and III kerogens) shale source rocks. Although all oils analyzed are considered to be from the same source rocks, Las Mesas oils were derived from a slightly different more marine shale facies while the San Bartolo oils are marine with deltaic influence. These oils are considered moderately mature with Ro estimated between .70% (Las Mesas) and .75-.80% (San Bartolo) indicating early to early main oil window expulsion.

The Company will continue to advise shareholders during the coming weeks regarding progress with the retooling efforts and schedule estimates for commencement of the next drilling program.

WE SEEK SAFE HARBOUR

This press release contains certain forward-looking statements. While these forward-looking statements represent our best current judgment, they are subject to a variety of risks and uncertainties that are beyond the Company's ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Contact Information

  • Norwood Resources Ltd. (NRS)
    Raymond Cahill
    President & CEO
    (604) 642-6566

    Norwood Resources Ltd. (NRS)
    James Charuk
    Executive Vice President, Exploration
    (604) 642-6566
    Email: info@norwoodresources.com