13 January 2014
Nordic Energy PLC/ Index: ISDX / Epic: NORP / Sector: Oil & Gas
Nordic Energy Plc
("Nordic" or the "Company")
Application for new licence in Danish North Sea
and
Publication of Analyst Research by Allenby Capital
Nordic Energy PLC, 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), is
pleased to announce that it has applied to the Danish Energy Agency for a new
exploration and production licence in the Danish North Sea, with the view to
increase the Company's exposure to a highly prospective exploration area.
The application is for eight offshore blocks ("the Blocks") comprising an area
of 1,750 sq km. The application was made through Nordic's 100% owned Danish
subsidiary ESP Oil & Gas ApS ("ESP"), under the Danish Open Door Policy. The
application area is directly adjacent to Nordic's Licence 1/13 ("the Licence"),
which is the largest E&P licence in the Danish North Sea covering an area of
3,622 sq km, which was acquired by Nordic in September 2013 and is operated by
ESP.
The application for the Blocks: 5606/26, 5606/27, 5606/30, 5606/31, 5506/02,
5506/03, 5506/06, 5506/07, is currently in the review process. A further
announcement will be made in due course.
The Company is also pleased to announce that broker Allenby Capital has
published analyst coverage on Nordic, headlined "Well positioned for the next
stage of Development". A link to this note can be obtained via the Company's
website: www.nordicenergyplc.com
Commenting on today's news, Nordic Energy's CEO, Rudolf Kleiber said: "Since
theacquisitionofLicence 1/13,in the Danish North Sea in September last year,we
havebeenevaluatingtheexisting dataover the Licence areaand believe this area to
be highly prospectivewith several different play typesand potential reservoir
levels. As the Company continuesto explore thepotential in Licence 1/13, the
Directors believethe acquisition of the adjacent blocks will expandNordic'shigh
potentiallicenceportfolio.
"The Directors arepleasedto provide shareholders with access to analyst
research throughAllenby Capital'sreport and invites investorsto its website for
further information."
Further Information
Nordic holds Licence 1/13, the largest exploration and production licence in
the Danish North Sea, covering an area of 3,622 sq km. The Licence is located
approximately 50 km from the edge of the Central Graben, where existing
production and multiple discoveries are located, and 100 km from the Siri Area
which has a number of Tertiary fields.
Two wells have been drilled on the Licence by Chevron Corporation ("Chevron"):
the R-1 well, drilled in 1973, and the S-1 well, drilled in 1975. More recently
the Erik-1 well was drilled by Maersk Group ("Maersk") in 2001, a short
distance to the east of the Licence, and the Luna Well in 2012 to the west of
the Licence by Noreco. The Directors believe that the presence of a thin gas
bearing Miocene sand in the R-1 well is of particular significance, proving the
presence of hydrocarbons on the Licence area and the presence of porous and
permeable sands with gas trapped inside. No drill stem test was carried out on
this zone, which was estimated to flow 2 million cubic feet gas per day during
controlling operations from a 29' Miocene sand.
Similar thin shallow Miocene sands have been developed as commercial gas fields
by Chevron in the northern Dutch North Sea sector and therefore the extent of
these resources is presently being investigated on the Licence as it adds a
potentially new, low risk prospect type to the high risk, high reward Chalk,
Rotliegendes and Pre-Permian potential which has also been mapped.
In the opinion of Nordic's Directors, the results of the Luna Well indicate
that it was not drilled on a valid trap as the Top Rotliegend, the main
targeted reservoir horizon, was encountered much deeper than anticipated. It
was also drilled in a location where, in the Directors' opinion, migration of
hydrocarbons at pre-Chalk level is unlikely. Nevertheless, the Luna Well
encountered strong gas shows in the Tertiary, which were analysed to contain
components of nC4 and nC5. This would indicate that at least some of the gas in
the Luna Well was derived from a mature hydrocarbon source rock, most likely in
the Central Graben, rather than being of biogenic origin. The Luna Well also
encountered sandstones of the Auk Formation in the short sequence of
Rotliegendes rocks where the Well was abandoned. No indications of basement
rocks or solid Rotliegendes volcanic flows were encountered. Although the Luna
Well was plugged and abandoned dry, the specific results outlined above offers,
in the Directors' opinion, significant encouragement in respect of the
Rotliegendes potential of the Licence, and is expected to improve the COS of
exploratory drilling. Should the Luna Well not have tested a valid trap, the
Directors believe that this could explain the absence of hydrocarbons in the
Rotliegendes. Hydrocarbons that potentially had migrated all the way from the
Central Graben to the Luna Well might also have covered the remaining short
distance (40 km) to fill structures in Licence 1/13. Auk Formation sands found
in the Luna Well's logs might be found further east in 1/13 as well, with
potentially better reservoir parameters.
The Directors of the Company are responsible for the contents of this
announcement.
**ENDS**
For further information please visit www.nordicenergyplc.com or contact:
Nordic Energy Plc Rudolf Kleiber 01932 865 111
Nordic Energy Plc Patrick Rocholl 020 7283 0179
Cairn Financial Advisers Jo Turner / Liam Murray 020 7148 7900
Yellow Jersey PR Ltd Kelsey Traynor 077 9900 3220
Yellow Jersey PR Ltd Dominic Barretto 077 6853 7739
Allenby Capital Ltd Chris Crawford 020 3328 5656
Notes
Nordic Energy is an oil and gas exploration & production company focused on the
North Sea and northern Europe. The Company listed on the ISDX Growth Market in
October 2012 to acquire low cost entry opportunities in the UK, Danish and
Dutch offshore sectors. The Directors have significant experience in the Nordic
Region in particular and are focused on building a multi-project portfolio at
various stages of development including exploration and production.
The
Directors have been assessing a number of assets in the Nordic Region and have
a pipeline of projects including exploration, development and production in
Denmark, the Netherlands and offshore UK.
The Company's focus is on exploration success in the Danish North Sea to create
near-term value for shareholders. The Company will leverage its industry
experience to acquire prospective low-cost exploration assets and production in
the Nordic region and re-evaluate prospectivity by applying modern technology.
The Board of Directors plans to use surplus cash flow from producing asset(s)
to fund future exploration activity. A tight control of corporate overheads
will maintain focus on operational value delivery.