Nordic Energy PLC, a company focussed on making investments in the North Sea oil and gas sector, announces that NikOil Limited, a private company jointly owned by the Directors of Nordic, has been awarded by the Danish Government the 3,600 sq km offshore exploration and production licence 01-13 (`the Licence’) located in a working hydrocarbon system off the west coast of Denmark in the Danish North Sea.
Pursuant to a Letter of Intent (`LOI’) signed by the Company and Nikoil, Nordic will acquire the Licence from Nikoil, subject to the consent of the Danish Government. The terms of the transfer, which are not expected to be material, will be announced following the Danish government consent.
Overview
* Licence located in a working hydrocarbon system
* Close to existing production and multiple discoveries
Two previous wells drilled in 1970s – one encountered gas
* Ten large prospects/leads previously identified and independently confirmed by a Competent Person in 2010
* Six oil prospects and leads with potential recoverable resources of between 805 – 7,526 million barrels oil (`MMbo’)
Four gas leads with potential recoverable resources of 1,084 – 7,304 billion cubic feet of gas (`BCF’)
* Multiple geological horizons – structures mapped in Top Chalk, Top Rotliegendes and Top Pre-Permian reservoirs
* Significant (11,600km) existing 2D seismic and well database is available at nominal cost. This database represents a significant investment by previous operators which supports the project
* New processing technology being applied to existing seismic data set to further delineate the prospectivity (pseudo-3D)
* Danish North Sea Fund will participate in the Licence with a fully-paying 20% working interest
Nordic Energy CEO Rudolf Kleiber said, “We are focussed on generating substantial value for shareholders by building and developing a multi-stage portfolio of highly prospective oil and gas assets in the Nordic region, including both exploration and production. This, our first licence, matches our investment criteria: low cost entry; proven hydrocarbon system; large existing seismic dataset that can be reworked using advanced technology; identified prospects; located in shallow water close to markets and infrastructure. Upon final approval from the Danish Government, we will rework the existing data using the existing 2D and pseudo-3D seismic technology to further delineate and mature the identified prospects and leads to drill ready status. I look forward to providing further updates in due course.”
[mappress] Press Release, May 01, 2013