Norwood produces 38.5 API light crude oil from SB-1X2 sidetrack well

Trading Symbol: NRS

VANCOUVER, Dec. 16 /CNW/ - Norwood Resources Ltd. (the "Company') wishes to update shareholders regarding the status of current drilling and testing operations for the San Bartolo-1X2 sidetrack well in Nicaragua.

The current depth of the well is 6340'. As previously released, the objective of this sidetrack well is to evaluate fluid content and potential productive oil flow rates from up to four (4) priority pay zones identified on logs from the Upper Brito formation. Thus far, three (3) of the four (4) zones have been penetrated (zones 10, 9 & 7). Zone 10 proved to be tight with no fluids recovered. 57.3 barrels of light crude oil measuring 38.5 API gravity have been recovered in swabbing operations from zones 9 and 7 to date.

Zone 9 (6060'-6110') recovered 18.3 barrels of oil and no water in 5.4 hours. A pressure drop of 1005psi during this drawdown indicates this zone will need stimulation for sustained production. Zone 7 (6252'-6295') recovered a total of 39.0 barrels of oil. 22 barrels of pure oil were recovered in the first 3.1 hours with only a 248psi pressure drop. Bottom-hole pressure data from shut in response predicts a maximum flow rate of 416bopd from this zone. Fluorescent, medium-grained sandstone cuttings were observed in 35'of the 43' sandstone interval and this is considered the permeable reservoir facies.

Ten hours after the commencement of Zone 7 testing, swabbing operations started to recover contaminated fluid which lab analysis shows to be brine (16,000ppm chlorides) with high Calcium (5000ppm), Potassium (500-2500ppm), and low pH (5.8-6.0). It is interpreted that this fluid is a mixture of drilling and completion fluids used in the San Bartolo-1 wellbore where a small (240bbls) acetic acid frac, performed in July 2007, has likely contacted this sidetrack. The zone 7 penetration point in SB-1X2 is about 65' away from the site of the 2007 acid frac. Swabbing operations of the SB-1X2 zone 7 sands continue with the objective of removing all the previously injected drilling fluid and return the well production to pure oil. The penetration of zone 6, anticipated at 6390'-6410' has been postponed pending cleanup and testing of zone 7.

Additionally, significant gas was flared during the swabbing of both zones. No free gas is indicated on well logs indicating that the reservoirs are driven by the expansion of low saturation gas in solution. This drive mechanism is characteristic of oil production from reservoirs with no water support and no production of water during oil recovery. This supports the interpretation that continued production from zone 7 should remove all foreign fluids and return the production to clean oil.

Although the conclusive recovery of light gravity oil is very encouraging, additional testing and flows need to be completed in order to determine the potential for commercial viability. The Company will provide further updates as operations progress.

ON BEHALF OF THE BOARD OF DIRECTORS OF
NORWOOD RESOURCES LTD.

"Raymond Cahill"

Raymond Cahill
President & CEO

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.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY
FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE
For further information: about Norwood Resources Ltd. (NRS) contact: Raymond Cahill, President, E-Mail: info@norwoodresources.com, Telephone: (604) 642-6566

NRS Norwood Resources Ltd. 0.275 +0.085 44.74%

CHART - breakout - http://stockcharts.com/h-sc/ui?s=NRS.V&p=DAILY&b=5&g=0&id=p11354210803

Look at the weekly volume and action - up 100% and strong... sleeper awakes (?)

0.140 +0.035 (33.33%)

Again, action... hmmm... accumulation?

Volume continuing, up 80% in the week... have a look

Lots of volume today, up ~20%...

Norwood Arranges Financing for Recommencement of Drilling
Press Release
Source: Norwood Resources Ltd.
On Wednesday July 15, 2009, 4:30 pm EDT
Buzz up! 0 Print.
Trading Symbol: NRS
VANCOUVER, July 15 /CNW/ - Norwood Resources Ltd. (the "Company) reports that the Company intends to recommence field exploration activities this fall on the Indoklanicsa concession in Nicaragua. The board of directors is currently reviewing drilling recommendations which have resulted from a series of technical and engineering workshops conducted during the past six months by the Company's technical and operations team with participation from several independent accredited Canadian & US petrophysical and engineering consulting firms. A final decision will be taken very shortly on the recommended drilling program, the goal of which is to achieve commercial production at the San Bartolo location by the end of the year. Specific details of the drilling program will be reported within the coming weeks when the Company has received the necessary approvals from the Nicaraguan authorities.

The Company's operations team will be headed by Mr. Roberto Rodrigano, a leading drilling and production engineer and specialist in under-balanced drilling, who has brought many important wells into production around the world during his 39 year career.

In order to finance the next drilling program, make necessary rig upgrades and purchase specialized equipment for under-balanced drilling, the Company is arranging a financing for US$5 Million minimum by way of 'Secured Convertible Promissory Notes'. The term of the Notes will be for 2 years and will be secured by way of a general security interest on all of the assets of the Company. A coupon of 10% per annum will be paid semi-annually. The Company will have the right to repay the Notes and accrued interest during the term by providing thirty (30) days advance notice to the Note holders. If the Company elects for an early repayment, a 5% penalty/bonus will be paid. The Note holders can elect to convert under the terms of the Notes during the same period.

The Notes will be convertible into units at a deemed price of Cdn$0.07. Each unit will consist of one common share of the Company and one share purchase warrant. Each share purchase warrant entitles the holder to purchase one additional common share of the Company at a price of Cdn$0.10, exercisable for two years from closing. The share purchase warrants may be exercised without converting the Notes. The Company will have the right to accelerate conversion of the share purchase warrants if the common shares of the Company trade above Cdn$0.50 for ten consecutive trading days.

The Notes will be issued and governed under the terms of a trust indenture to be entered into between the Company and Computershare Canada Limited and will be offered in Canada and in the US under the "accredited investor" provisions of the relevant jurisdiction and to subscribers from other jurisdictions subject to applicable laws. Issuance of the Notes is subject to regulatory approval.


ON BEHALF OF THE BOARD OF DIRECTORS OF
NORWOOD RESOURCES LTD.

"Raymond Cahill"

Raymond Cahill
President & CEO


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.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY
FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE

For further information

To find out more about Norwood Resources Ltd. (NRS) contact: Raymond Cahill, President & CEO, E-Mail: info@norwoodresources.com, Telephone: (604) 642-6566

Interesting volume this am... news coming? Oil is back...

HALTED 10/26/7 , news should be out Monday 6am before market

SO WHATS THE DEAL WITH BIG FOOT SPIN OFF

if linked-chart appears reduced, click on it to enlarge
http://stockcharts.com/h-sc/ui?s=NRS.V&p=D&yr=0&mn=3&dy=0&id=p16703444545&a=...