NORTH SEA ENERGY CORPORATE UPDATE
2017-06-28 11:53 ET - News Release
Mr. Ian Lambert reports
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. (NSE2).
Bagpuss and Blofeld prospects
During 2016, the 13/25-1 Bagpuss well was spudded on July 18, 2016,
shortly after the Ocean Valiant offshore drilling rig arrived on site at
the Bagpuss prospect. On Aug. 5, 2016, North Sea Energy 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 two kilometres from
the 1981 Amoco well in the same structure.
The well encountered 41 feet of hydrocarbon-bearing sands within a
68-foot hydrocarbon column. This was in line with predrill estimates.
The sands have porosity of between 25 per cent and 33 per cent, 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 the company's independent
prospective resource assessment, please refer to the press release dated
June 27, 2013, posted on SEDAR.
In early 2017, the United Kingdom Oil and Gas Association (OGA)
approved the renewal of the Bagpuss/Blofeld licence P.1943 into the
second four-year term. Reach Halibut Ltd. has been approved by the OGA
as operator. Following reassignment of Maersk's 25-per-cent working
interest in the Bagpuss on a pro rata basis, NSE2's working interest in
Bagpuss increased from 15 per cent to 20 per cent. The working interests
in the Bagpuss joint venture going forward are as follows: Encounter
-- 17.67 per cent, Groliffe -- 8.83 per cent, NSE2 -- 20 per cent and
Reach Halibut -- 53.5 per cent (total -- 100 per cent).
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 North Sea Energy Inc.
North Sea Energy holds two high-impact opportunities in the United
Kingdom North Sea. These opportunities are the Bagpuss and Blofeld
prospects located in blocks 13/24c and 13/25 of the United Kingdom
We seek Safe Harbor.