Largest E&P licence in Danish North Sea acquired by Nordic Energy
LONDON -- Nordic Energy plc has acquired Licence 01/13, the largest exploration and production licence in the Danish North Sea, covering an area of 3,600 sq km in a proven hydrocarbon system. This follows the award of the licence by the Danish Government to NikOil Limited.
The licence is located in close proximity to existing production and multiple discoveries in the Danish Central Graben, the location of major North Sea producing fields and the source of Palaeocene Siri oil. Two previous wells were drilled on the Licence in 1970s, one of which tested gas in the Miocene.
The licence contains, totally or partially, six oil prospects and leads with potential P50 recoverable resources of 1.2 billion barrels of oil and four gas leads with potential P50 recoverable resources of 2.8 trillion cubic feet of gas. The Luna well drilled last year in close proximity to the licence demonstrated the presence of Auk Formation sandstones. The Auk Formation is the main reservoir in the southern UK gas basin and in the Netherlands, including the supergiant Groningen field.
Nordic has secured an option to acquire 11,600 km of existing 2-D seismic and a pseudo-3-D seismic data volume covering the licence area which is presently being processed. Both 2-D and pseudo-3-D seismic will be interpreted, together with data from existing wells, to develop drill ready prospects on the licence.
Nordic has an 80% working interest in the licence with a single partner, the Danish North Sea Fund, holding a fully-paying working interest in the remaining 20%. Under the terms of the transfer, £104,000 nominal of an unsecured interest free convertible loan note has been issued to NikOil which is convertible into 8,320,000 Ordinary Shares in the Company at 1.25p per share.