North Sea Energy Secures Farm-In Agreement with Maersk Oil North Sea UK Limited on the Bagpuss and Blofeld Prospects
August 16, 2013 (Source: Marketwired) — North Sea Energy Inc. (“NSE” or the “Company“) (TSX VENTURE:NUK) is pleased to announce that through its wholly owned subsidiary, North Sea Energy (UK NO2) Limited (“NSE UK2”), it has entered into a farm-in agreement with Maersk Oil North Sea UK Limited (“Maersk Oil”) to participate in the initial exploration and appraisal of the Company’s UK North Sea blocks 13/24c and 13/25 (“Bagpuss Prospect”).
Blocks 13/24c and 13/25, containing the Bagpuss and Blofeld prospects, were awarded to NSE UK2 and EnCounter Oil Ltd. (as Licence Administrator) under Promote Licence P.1943 in the UKCS 27th Licensing Round effective from 1st January 2013. NSE UK2’s working interest in the licence is 40%, EnCounter Oil Ltd. 40%, and Groliffe Ltd. subsequently exercised its right to back in to the licence for a 20% working interest. The Prospects are located on the Halibut Horst which is a well-defined basement high within the Moray Firth, in the North Sea, United Kingdom.
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, on a Bagpuss appraisal well should one be drilled. In return, Maersk Oil will acquire a 25% working interest and NSE will retain a 15% working interest in blocks 13/24c and 13/25. It is expected that the initial well at Bagpuss could spud in 2014.
NSE has been advised that its partners in the Bagpuss and Blofeld Prospects, Encounter Oil Ltd. and Groliffe Ltd., have successfully reached agreements with a farm-in partner. Encounter Oil Ltd. will retain a 15% working interest and Groliffe Ltd. will retain a 7.5% working interest, with their farm-in partner acquiring a 37.5% working interest in blocks 13/24c and 13/25.
The proposed transactions are subject to the approval of UK Department of Energy and Climate Change (DECC) and third party consents.
“We are very excited to have successfully farmed-out the Bagpuss Prospect to a world-class partner in Maersk Oil for the initial exploration and appraisal of the Prospect,” stated Craig Anderson, CEO of the Company.
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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.
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.
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Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>