North Sea Energy Significantly Increases Resources and Opens Data Room
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 05/15/12 -- North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE: NUK) is pleased to announce it has recently received a Prospective Resource Assessment of UK North Sea Block 12/30, "Badger Prospect", issued by Senergy (GB) Limited on May 14, 2012 in accordance with NI 51-101 (the "Report"), increasing the Company's resources by approximately 48% on a mid-case basis.
The Company's current estimates for the Badger Prospect are for oil initially in place and prospective resources as stated in the tables below:
It should be noted that there is no certainty that any portion of the resources will be discovered. If a discovery is made, there is no certainty that it will be commercially viable to produce any portion of the resources or, if it is developed, there is no certainty as to the timing of such development.
About the Badger Prospect, Block 12/30
The license administrator is Echo Exploration Limited, a wholly owned subsidiary of the Company, who is also administering three other exploration licenses in the UK North Sea. The Company's gross interest in the Block is approximately 250km(2) (Net to NSE: 125km(2)). The Company's equity interest is 50%, with Premier Oil plc holding the other 50%.
The Company has been informally notified that it is the successful applicant for a Promote License in the 26th UK North Sea Licensing Round for the Badger Prospect, covering the entirety of awarded Block 12/30. The effective date for the license will be February 1, 2012 and the initial term expires January 31, 2016. A drill or drop decision has to be made by January 31, 2014. The work programme is to obtain 150 km of existing 2D seismic, and this has been completed. The drill or drop requirement is to drill a well to 5,500' to test the Punt Sandstone prospect on the block. The license enters a second term of four years on February 1, 2016.
The Badger Prospect is located in the Inner Moray Firth about 28 km southwest of the Captain field, and is a structural/stratigraphic trap with a Lower Cretaceous Punt sandstone reservoir objective. The forward work program will focus on the selection of a drilling location in preparation for a well proposed to be drilled in the second half of 2013.
The nearest producing fields are Captain some 28 km to the northeast and Ross located 35 km to the east. The reservoir in the former is Lower Cretaceous Wick Group sandstone, and the latter produces oil and associated gas from Upper Jurassic Piper sandstones. The nearest oil and gas discovery to the block is the well 13/26-2 (Dee discovery) about 15 km to the southeast.
If the Company reaches a drill decision, the estimated cost to drill and test a well will be approximately $10mm gross in the second half of 2013. The product will most likely be oil of medium to high gravity with some associated gas.
Crude oil is expected to be transported by pipeline to the Ross floating production, storage and offloading ("FPSO") and from there by shuttle tanker to the purchasing parties preferred destination (Rotterdam, Grangemouth, Humberside). Oil will be sold at North Sea Brent Market price at time of first production estimated in 2015. Economic evaluations going forward use a price of $80/bbl for expected monetary value ("EMV") and net present value ("NPV") estimations.
The risk associated with an exploration prospect comprises two components: the chance of discovery (or of geological success) and the chance of development. The following risk factors will impact on the chance of discovery or of geological success:
Trap Presence and Effectiveness: the closure geometry is reasonably well defined on a 2D seismic grid. The top seal effectiveness is likely to be good but there is risk associated with both bottom and lateral seal to the trap.
Reservoir Presence and Effectiveness: the presence of the Punt Sheet sandstone interval with good reservoir quality is proven by two nearby wells. The presence of sands in the upper Punt Channel interval is postulated based on seismic data character.
Source and Charge Presence and Effectiveness: the presence of an active petroleum system in the basin is proven and both oil and gas are present in the Dee discovery about 15 km to the southeast of the Badger Prospect. There is risk associated with migration into the prospect as the source kitchen maturation and subsidence history of this part of the basin are relatively complex, and there is no prospect specific source and migration study in the database.
Opening of Data Room
In addition, the Company is pleased to announce the opening of its data room in order to facilitate the farming out of its Badger Prospect (block 12/30), Bobcat Prospect (block 13/28b), Bass Prospect (block 22/5c) and Bluebird Discovery and Blackbird Prospects (block 15/21d). The Company has opened the data room to allow parties to evaluate and bid on the opportunities presented on the aforementioned blocks. Ian Lisseter will be the primary contact for running the Senergy (GB) Limited hosted data room in the London area, UK.
Investor Relations
Lastly, the Company wishes to announce that it has extended its investor relations agreement between NSE and Auburn Partners Inc. (the "Agreement"), as previously announced on October 21, 2011. NSE has extended the Agreement for a 12 month period, effective January 21, 2012. All other terms of the Agreement remain the same.
About North Sea Energy Inc.
NSE (TSX VENTURE: NUK) is a UK-focused oil and gas exploration and production ("E&P") company listed on the TSX Venture Exchange. NSE is producing light oil from the Jacky field, located in the Inner Moray Firth off the Scottish coast and has acquired an interest in nine blocks in the North Sea.
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.
Contacts:
North Sea Energy Inc.
J. Craig Anderson
CEO
416-366-4700
Investor Relations:
Auburn Partners Inc.
647-430-8760
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Datum: 15.05.2012 - 18:42 Uhr
Sprache: Deutsch
News-ID 146866
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Oil & Gas
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