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Nordic Energy (LSE:NORP), an oil and gas E&P company focussed on Denmark, Norway, and the North Sea sectors of the Netherlands and the UK (the Nordic Area), has issued an update on its 80% owned Danish Licence 1/13 (‘the Licence’). The Licence, acquired by Nordic during September, 2013, is the largest exploration and production licence in the Danish North Sea, covering 3,600 sq km.
As detailed in the Company’s announcement on 4 September 2013, previous exploration activities have occurred on the Licence, including two wells drilled in the 1970s. The results of these activities which identified ten large prospects were documented by a previous licence holder in two Competent Person’s Reports (‘CPR’) released in 2010 and 2011, both of which are still in the public domain.
The Directors of the Company advise that these CPR reports largely cover different areas (the 2011 CPR does not cover the Licence area, but does include 75% of ‘Lead A’ shown in the table below, and the 2010 CPR covers the whole of Licence 1/13 as well as additional acreage outside the Licence area) and different sets of prospects and leads. The 2011 CPR covered a number of different prospects in an area to the west of Licence 1/13 where a well was later drilled (‘the Luna Well’). The Company has subsequently acquired the Luna Well data and advises that this data was not incorporated into the published CPR reports.
Nordic is now in the process of evaluating the prospectivity of the Licence based on new data. Nordic’s technical evaluation of the Licence will be carried out using a newly acquired pseudo-3D seismic volume and will incorporate the results from the Luna Well along with other relevant data. The evaluation will generate updated maps and a new set of volumetrics and risking on a Chance of Success (‘COS’) basis for the Licence. As a result of this on-going technical evaluation new volumes and risk factors could turn out to be higher or lower than previously assessed in the published CPRs. The Directors anticipate that the technical update will be released to the market in the first quarter of 2014.
Nordic Energy CEO Rudolf Kleiber said, “Considerable technical data including 11,600km of 2D seismic and various well logs exist for Licence 1/13 in the Danish North Sea. We are currently applying advanced technologies and techniques to this data to build a comprehensive pseudo-3D geological model for the Licence area. We expect the results of this work including volumetrics to be available in Q1 2014 which will be followed by a new CPR. In addition to being the largest in the Danish North Sea, the Directors’ believe Licence 1/13 has potentially multiple company-making structures which the Company is looking to systematically de-risk and prove up. I look forward to providing further updates on our progress in due course.”
