North Sea Energy Closes Farm-in Agreement on Bagpuss and Blofeld Prospects
Toronto, Ontario – November 7, 2013 – North Sea Energy Inc. (“NSE” or the “Company”) (TSX-V:NUK) is pleased to announce that it has closed the farm-in agreement with Maersk Oil North Sea UK Limited (“Maersk Oil”) and has executed a joint operating agreement (“JOA”) with its joint venture partners: Maersk Oil, Premier Oil UK Limited (“Premier”), EnCounter Oil Ltd. (“EnCounter”) and Groliffe Ltd. (“Groliffe”) on UK Petroleum Production Licence P1943 Blocks 13/24c and 13/25 (“Licence”), including the Bagpuss and Blofeld Prospects. Under the JOA, Premier has taken over as Operator of the Licence. UK Department of Energy and Climate Change (DECC) has approved the aforementioned transaction.
About the Bagpuss and Blofeld Prospects
The Bagpuss and Blofeld Prospects are located on the Halibut Horst, which is a well-defined basement high within the Moray Firth in the North Sea, United Kingdom. The Company completed a competent persons report (CPR) on the Prospects in June 2013, confirming 3.6 billion barrel oil in place potential STOIIP (P10) (see Company’s press release dated June 27, 2013 for further details). The Company considers the Prospects to be a high impact target and the first well is planned to be drilled in 2014 or 2015; subject to rig availability. A well on the Bagpuss Prospect was drilled by Amoco in 1981 and encountered hydrocarbons, but it was not tested.
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 in the Licence from NSE, which will retain a 15% working interest. Premier has acquired a 37.5% working interest in the Licence from Groliffe and EnCounter, which have retained a 7.5% working interest and a 15% working interest respectively.
About North Sea Energy Inc.
North Sea Energy Inc. (TSXV:NUK) is an oil and gas company that holds a portfolio of high impact plays focused on the Moray Firth in the offshore UK North Sea. These plays include Bagpuss and Blofeld (blocks 13/24c and 13/25), Norfolk and Norfolk East (blocks 12/16b and 12/17b), and Cloud (block 14/29b).
For further information, please contact:
J. Craig Anderson,
Chairman & CEO
North Sea Energy Inc.
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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Symbol: TSX-V: NUK
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