Norstra Energy Inc (NORX)

[Heliopios]

Norstra annual Form 10-k

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9344040

Notable mentions:


Insiders cancelling shares?! On OTC?! They must see a reason; future growth.

Also on March 1, 2013, Mr. Kerkenezov, or chief financial officer and Ms. Heredia, our former director, cancelled a total of 35,513,100 shares of our common stock held by them. Mr. Kerkenezov cancelled 27,013,100 and Ms. Heredia cancelled 8,500,000. These shares were cancelled in order to make our company more attractive for financing, given the capital requirements of the South Sun River Bakken Prospect.

[IMO, Shows me we have a less-greedy-than normal-type running this! Taking less now to help the company earn financing and investors!]

Terms of Bakken project:

On March 12, 2013, we entered into a farmout agreement with Summit West Oil, LLC for approximately 10,000 acres of oil and gas exploration property in northwest Montana known as the South Sun River Bakken Prospect. This property has since become our main focus. Under the terms of the farmout agreement, we are required to carry out the following expenditures in order to earn ownership of the property:
$60,000 by April 5, 2013 for the acquisition of seismic and other exploration data; (requirement met);
$140,000 by April 30, 2013 for the reinterpretation of the seismic data as well as delineation and surveying of potential drill locations; (requirement met);
Drilling of an additional horizontal well at an estimated expenditure of $5,000,000 by June 30, 2013;
Drilling of a horizontal well at an estimated expenditure of $5,000,000 by December 31, 2013; and
Drilling of an additional horizontal well at an estimated expenditure of $5,000,000 by December 31, 2014.

Once we complete the above obligations, we will hold a 100% interest in the property, subject to an underlying 20% burden to Summit West Oil, LLC and the State of Montana.

Wells near Bakken project area:

There are three key wells in the immediate vicinity of the first potential Norstra drill site.

Krone #3132 drilled by Shell Oil Company. This well demonstrates those essential parameters for a commercial well in the Bakken Oil Formation. There are 24 feet of Bakken middle member present. The middle member of the Bakken Oil Formation produces most of the oil today. The reservoir rock displays a resistivity of 200 ohms suggesting oil and gas is present. The well is less than 2.5 miles away from the first proposed Norstra drill site.

Steinbach #1 drilled by Arco. The Steinbach # 1 well is around 3,000 feet deeper than the Krone well. The same reservoir is present, but with deeper buried shales that are heated at a higher temperature resulting in higher resistivities from the generations of oil and gas. The resistivity here is over 2,000 ohms. The well is less than 5 miles south of the first proposed drill site.

Soap Creek Cattle Co. #1331 drilled by Flying J Oil and Gas. The well is not studied much because it did not penetrate the Bakken Oil Formation. It still has some very significant information for our project. The well stopped in the middle member of the Blackleaf Oil Formation at a depth of 5,480 feet. The Bakken is perhaps 3,000 feet deeper. What is of interest is that in one of the many faults present, there is oil described by the geologist, M.K. Jones. The oil is described from 4,928 to 4,994 feet. It is in a fractured member of the Taft Hill and the oil has been biodegraded to a heavy crude due to the presence of the water in the fractures. This oil has migrated up the thrust from deeper formations. The source for the oil could be the Bakken Oil Formation. This well is less than 0.75 miles from the proposed first drillsite away. Just the fact that oil is present so close to the Company's proposed well site is extremely significant.

Results of Operations

We have generated no revenues and have incurred $44,090 in expenses since inception through February 28, 2013.



The following table provides selected financial data about our company for the year ended February 28, 2013 and February 29, 2012.



Balance Sheet Date
02/28/13
Cash
$ 99,550

Total Assets
$ 125,114

Total Liabilities
$ 114,473

Stockholders’ Equity
$ 10,641

Enough money on hand for two years at current expenses.