18 February 2014
Nordic Energy PLC/ Index: ISDX / Epic: NORP / Sector: Oil & Gas
Nordic Energy Plc
("Nordic" or the "Company")
Technical Update
Sizeable increase in the previously identified prospect inventory
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 inform shareholders that the structural interpretation and mapping
of existing 2D seismic data and a newly reprocessed pseudo-3D volume over the
area of the Licence 1/13 ("Licence") have now been completed. These results
have incorporated new information from the Luna well, drilled in 2012 to the
west of the Licence, along with data from a number of other relevant wells in
the area.
Highlights
* 20 prospects and leads have now been identified, representing a significant
increase from the 8 previously reported
* Mapping of new `Shallow Gas' Tertiary prospects with a high chance of
success and substantial resource potential
* Findings show a substantial increase in potential recoverable resources
across a broad and overall improved range of risk ratings, which is due to
the availability of pseudo 3-D data and the Luna well results
* The Company is now progressing further studies and technical analysis ahead
of planned 3D Seismic acquisition
* An updated CPR can be expected in early Q2 2014
This work has resulted in the generation of a comprehensive set of depth and
time maps. In addition, the Company is pleased to report a sizeable increase in
the previously identified prospect inventory to 20 prospects and leads within
the mapped area. The findings suggest the potential for very substantial
reserves as well as a range of risk ratings for individual prospects and the
licence area overall. Of specific importance is the emergence of a new set of
Tertiary prospects which complement the previously mapped `high risk, high
reward' Rotliegendes and Pre-Permian leads. The data suggests that the new
Tertiary prospects will provide a high chance of success ("COS") at substantial
resources potential.
The Company believes the outcome of the work to date to be highly encouraging
and will now follow these results with, amongst other activities, maturation
and migration studies to further highlight the potential of the area.
Nordic anticipates that the reserves potential and the chance of success of
exploration drilling will be underpinned by the independent review and
verification process offered through a Competent Persons Report ("CPR"), which
the Company is expecting to receive during early Q2 2014 and will announce once
available.
Nordic Energy CEO Rudolf Kleiber said: "Extensive technical work has been
carried out in and around Licence 1/13 in the Danish North Sea, including 2D
seismic data and the drilling of several wells. This dataset represents a
significant financial investment by previous operators and a valuable source of
information about the hydrocarbon prospectivity of the Danish subsurface.
"In our initial round of technical work, we have re-evaluated this existing
data and applied some advanced interpretation techniques, thus providing use
with new information that has not previously been available. We are very
encouraged by the results of our initial evaluation; we have now compiled a
comprehensive prospect portfolio with multiple reservoir objectives and
substantial risked reserves potential. It is our intention to acquire new 3D
seismic ahead of drilling one or more wells in the future and I look forward to
providing further updates on our progress in due course."
**ENDS**
For further information please visit www.nordicenergyplc.com or contact:
Enquiries:
Rudolf Kleiber Tel: +44 20 7283 0179
Nordic Energy PLC
Patrick Rocholl Tel: +44 20 7283 0179
Nordic Energy PLC
Jo Turner Tel: +44 20 7148 7900
Cairn Financial Advisers LLP
Liam Murray Tel: +44 20 7148 7900
Cairn Financial Advisers LLP
Kelsey Traynor Tel: +44 7799 003 220
Yellow Jersey PR Limited
Dominic Barretto
Yellow Jersey PR Limited Tel: +44 7768 537 739
Further Information
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 opportunities covering all major stages of the development curve
including exploration, development and production in Denmark, the Netherlands
and offshore UK.
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 potential resources is presently being investigated on the Licence as it
adds a 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 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.