North Sea Energy Provides Corporate Update
TORONTO, ONTARIO--(Marketwired - Feb 12, 2014) - North Sea
Energy Inc. ("NSE" or the "Company") (TSX-VENTURE:NUK) is pleased
to provide an update on the Company's forward plans relating to its
prospects.
Bagpuss and Blofeld
Update
The Bagpuss and Blofeld prospects (Blocks 13/24c and 13/25) are
considered by the Company to be prospects with high impact targets
and the first well is planned to be drilled in late 2014 or 1H
2015; subject to rig availability. Through the first half of 2014,
the partnership will choose a drilling location for the first
Bagpuss well and the operator Premier Oil UK Limited ("Premier
Oil") will commence the well planning and the site survey in order
to prepare for the well.
NSE obtained a competent person's report (CPR) on the prospects
in June 2013, confirming 3.6 billion barrel oil in place potential
STOIIP (P10), of which NSE owns 15% working interest (see the
Company's press release dated June 27, 2013 for further details). A
well on the Bagpuss prospect was drilled by Amoco in 1981 and
encountered hydrocarbons, but it was not tested.
In November 2013, the Company completed a farm-in agreement with
Maersk Oil North Sea UK Limited ("Maersk Oil"). Under the farm-in
agreement, Maersk Oil is to carry 100% of NSE's costs, subject to a
cap, to drill the initial Bagpuss Prospect exploration well,
including a site survey and agreed past costs. In addition, Maersk
Oil is to carry 50% of NSE's costs, subject to a cap, of a Bagpuss
appraisal well, should one be drilled. In return, Maersk Oil has
acquired a 25% working interest in the Licence from NSE. NSE
retains a 15% working interest. The other partners in the well are
Premier Oil (37.5%), Groliffe Limited (7.5%) and EnCounter Oil
Limited ("EnCounter Oil") (15%).
Potential Farm-out of
Blocks:
The Company is also actively looking to advance exploration by
way of potential farm-out deals, and is currently seeking partners
on the following prospects and leads:
Norfolk and Norfolk East Prospects - Blocks 12/16b and
12/17b
Norfolk is in Block(s) 12/16b and Norfolk East is in Block(s)
12/17b. NSE has a 20% working interest in the Blocks. The prospect
is located in the Inner Moray Firth, near the Sutherland coast
NE-SW basin formed by the Great Glen Fault on the west side and the
W-E Wick Fault to the north.
In November 2012, the Company and its partners completed a 2D/3D
hi-resolution seismic program on the prospect after receiving
approval from DECC. Subsequent to the seismic acquisition, the
operator, First Oil Expro Limited (First Oil), has re-evaluated the
Norfolk prospect and recommended a well location to the Technical
Committee. Currently, there is a joint data room open for the
Norfolk prospects in order to facilitate the farm-out process,
hosted by First Oil.
Cloud Prospect - Block 14/29b
EnCounter Oil (60% working interest) is hosting a joint data
room with NSE (40% working interest) in order to facilitate the
potential farm-out of the Cloud prospect, which is currently being
reviewed by a number of parties. The Cloud prospect, awarded in the
27th licencing round, is located in the Moray Firth, north of the
Goldeneye field, within Upper Jurassic gravity flow sands at depths
of between 6,900 and 7,675 feet. Cloud is updip of well 14/29-1
which encountered a 475 foot sequence of good quality middle and
early Volgian Claymore sands.
Del Monte and Kipling Leads - Blocks 19/3 and 19/2
The Del Monte and Kipling leads were awarded in the 27th Seaward
Licensing Round in the UK North Sea to NSE (40% working interest)
and its partner, EnCounter Oil (60% working interest). A joint data
room will be hosted in order to facilitate the potential farm-out
of the partners' interests in these blocks in Q2 2014.
The Del Monte lead is a stratigraphic trap within the Upper
Jurassic Burns Unit sandstone. At Burns Sandstone level, the crest
lies at 5,600 feet and the maximum closing contour is 6,100 feet,
giving a potential column height of 500 feet.
Golden Phoenix Lead - Block 18/10
The Golden Phoenix lead was awarded in the 27th Seaward
Licensing Round in the UK North Sea to NSE (40% working interest)
and its partner, EnCounter Oil (60% working interest). A joint data
room will be hosted in order to facilitate the potential farm-out
of the partners' interests in these blocks in Q2 2014.
The Golden Phoenix lead is a structural trap within the Upper
Jurassic Burns Unit sandstone and Middle Jurassic Beatrice
Sandstone. The lead lies entirely within the block. At Burns
Sandstone level, the crest lies at 3,350 feet, and the maximum
closing contour is 3,650 feet, giving a potential column height of
300 ft. At Beatrice Sandstone level, the crest lies at 5,400 feet
and the maximum closing contour is 6,100 feet, giving a potential
column height of 700 feet.
Other Items
NSE has renewed Auburn Partners' contract and has retained its
services through the end of 2014, on the same terms as announced on
October 21, 2011.
About North Sea Energy
Inc.
North Sea Energy Inc. (TSX-VENTURE:NUK) is an oil and gas
company that holds a portfolio of high impact interests focused on
the Moray Firth in the offshore UK North Sea. These interests
include Bagpuss and Blofeld (blocks 13/24c and 13/25), Norfolk
(blocks 12/16b and 12/17b), Cloud (block 14/29b), Del Monte (block
19/3) and Golden Phoenix (block 18/10a).
Forward-looking statements
Except for statements of historical fact, this news release
contains certain "forward-looking information" within the meaning
of applicable securities law. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. In particular, forward-looking information
in this press release includes, but is not limited to, statements
with respect to oil reserves and resources and future revenues.
Although we believe that the expectations reflected in the
forward-looking information are reasonable, there can be no
assurance that such expectations will prove to be correct. We
cannot guarantee future results, performance or achievements.
Consequently, there is no representation that the actual results
achieved will be the same, in whole or in part, as those set out in
the forward-looking information. Forward-looking information is
based on the opinions and estimates of management at the date the
statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those anticipated in the
forward-looking information. Some of the risks and other factors
that could cause the results to differ materially from those
expressed in the forward-looking information include, but are not
limited to: general economic conditions in Canada, the United
States, UK and globally; industry conditions, including
fluctuations in the prices of oil and natural gas; governmental
regulation of the oil and gas industry, including environmental
regulation; unanticipated operating events or performance which can
reduce production or cause production to be shut in or delayed;
failure to obtain industry partner and other third party consents
and approvals, if and when required; competition for and/or
inability to retain drilling rigs and other services; the
availability of capital on acceptable terms; the need to obtain
required approvals from regulatory authorities; stock market
volatility; volatility in market prices for oil and natural gas;
liabilities inherent in oil and natural gas operations; competition
for, among other things, capital, acquisitions of reserves,
undeveloped lands, skilled personnel and supplies; incorrect
assessments of the value of acquisitions; geological, technical,
drilling, processing and transportation problems; changes in tax
laws and incentive programs relating to the oil and gas industry;
failure to realize the anticipated benefits of acquisitions and
dispositions; and the other factors. Readers are cautioned that
this list of risk factors should not be construed as
exhaustive.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
North Sea Energy Inc.J. Craig
AndersonCEO416-366-4700canderson@northseaenergy.cawww.northseaenergy.caInvestor
Relations:Shanda Kilborn416-366-4700shanda@auburnpartners.com
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