2017-06-28 11:53 ET - News Release
Mr. Ian Lambert reports
NORTH SEA ENERGY CORPORATE UPDATE
North Sea Energy Inc. has provided a corporate update of the current status of activities for the company pertaining to its 20-per-cent interest in the Bagpuss and Blofeld prospects located in blocks 13/24c and 13/25 of the United Kingdom Continental Shelf, held through its wholly owned subsidiary, North Sea Energy (U.K. No 2) Ltd.
Bagpuss and Blofeld Prospect
During 2016, the 13/25-1 Bagpuss well ("Well") was spudded on July 18th, shortly after the Ocean Valiant offshore drilling rig arrived on site at the Bagpuss prospect. On August 5, 2016, NSE announced that the Well, which was targeting the Bagpuss prospect on the Halibut Horst in the Outer Moray Firth, reached a total depth of 1,532 feet in granite basement. The Well was drilled approximately 2 km from the 1981 Amoco well in the same structure.
The Well encountered 41 feet of hydrocarbon-bearing sands within a 68 feet hydrocarbon column. This was in line with pre-drill estimates. The sands have between 25%-33% porosity and initial indications were that the oil is heavy, which was expected. The Well, always planned to be an informational well only, was plugged and abandoned in accordance to the drilling plan. For further information on the Bagpuss and Blofeld Prospects in our Independent Prospective Resource Assessment, please refer to the press release dated June 27, 2013 posted on www.sedar.com.
In early 2017, the UK Oil and Gas Association ("the OGA") approved the renewal of the Bagpuss/Blofeld Licence P.1943 into the second 4 year term. Reach Halibut Limited has been approved by the OGA as Operator. Following reassignment of Maersk's 25% working interest in the Bagpuss on a pro-rata basis, NSE2's working interest in Bagpuss increased from 15 % to 20%. The working interests in the Bagpuss JV going forward are as follows: Encounter - 17.67%, Groliffe - 8.83%, NSE2 - 20.0%, Reach Halibut Limited - 53.5%, Total - 100%.
Gemini Negotiations
The Company and Gemini have intensified their discussions to reach a settlement agreement pertaining to the current $8,452,935 outstanding amount as a result of an Arbitration decision.
The Company wishes to confirm that management is unaware of any other material changes in the Company's operations that would account for the recent increase in market activity.
About NSE:
The Company, founded in February 2007, is a UK focused oil and gas exploration and appraisal company quoted on the TSX-V. NSE, along with its wholly owned subsidiary, North Sea Energy (UK NO2) Limited, holds two high impact opportunities in the UK North Sea. These opportunities are the Bagpuss and Blofeld prospects located in blocks 13/24c and 13/25 of the UKCS.
We seek Safe Harbor.