13 June 2014
Nordic Energy PLC/ Index: ISDX / Epic: NORP / Sector: Oil & Gas
Nordic Energy Plc
("Nordic" or the "Company")
Danish North Sea Licence 1/13 - Technical Update
CPR validates prospective & recoverable resource, including a potentially
commercial Gas Discovery
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 the publication of its Competent Person's Report ("CPR")
for its exploration and production licence area in the Danish North Sea,
Licence 1/13 ("Licence").
Highlights
* Reserve resource Audit on 3,600 sq km Danish North Sea Licence 1/13
completed on schedule
* CPR recognises the R-1 ("Maja") Miocene gas discovery which is similar in
age and depth to a number of successful gas fields that have been developed
in the Netherlands since 2007
* Early indications are that a commercial development of the Miocene gas on
licence 1/13 might be possible
* Contingent Net Recoverable Resources of 69 Bcf gas for the Maja discovery
* Significant upgrade of the number of prospects as announced on 18 February
2014 in previous technical report principally due to the new mapping of the
Miocene gas prospects through use of the Pseudo 3D - data and an
improvement in the geological chance of success
* Best Estimate Prospective Recoverable Resources of 1.8bn bbl oil and 1.9
Tcf gas in a portfolio of 20 prospects and leads
* Farm-out discussions commenced with well known IOCs
Licence 1/13 covers an area of 3,663 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. The Company operates the Licence and
holds an 80% working interest, the remaining 20% working interest being held
and paid for by Nordsøfonden. Nordsøfonden is the Danish State's oil and gas
company and are a non-operating partner in the Danish Underground Consortium
(DUC) and all new licences, making them a key player on the Danish Continental
Shelf.
Following the acquisition and interpretation of a new volume of Pseudo-3D
seismic data and corresponding existing 2D seismic data, Nordic retained the
services of Xodus Group Limited ("Xodus") to carry out an independent third
party contingent and prospective resource audit which has confirmed the
presence of a Gas Discovery in the R-1 well that has remained unappraised since
the well was drilled in 1973, and twenty further prospects and leads with four
different reservoir types, i.e. Miocene, Rotliegendes, Upper Cretaceous and
Pre-Permian.
The Gas Discovery is of particular significance to Nordic as it is found in the
same stratigraphic interval and in the same depth range of 1,000 - 1,600' as
the Chevron operated Dutch North Sea gas fields A12 and B10/13 which have been
on commercial production since 2007 and 2011 respectively. The performance of
these fields has exceeded initial recovery expectations, and now further
developments are planned in the Netherlands. Early indications are that the
Maja gas discovery on licence 1/13 may be commercially viable.
Xodus has reported that the Maja discovery has an estimated net contingent
recoverable resource to Nordic of 69 Bcf gas in the Miocene, and has identified
prospects and leads with a net Best Estimate prospective recoverable resource
of:
* 247 BCF gas from the Miocene (10 prospects),
* 1,160 MM STB oil from the Rotliegendes (2 prospects),
* 245 MM STB oil from the Upper Cretaceous (3 prospects) and
* 1,248 BCF gas from the Pre-Permian (5 prospects).
The following tables summarise the range of recoverable resources on the
licence net to Nordic:
Contingent Resources Net to Nordic Energy
1C 2C 3C Commercial
Risk Factor
Gas(in Bscf)
Miocene - Discovery 16 69 184 35%
Total (Bscf) 16 69 184
Prospective Resources Net to Nordic Energy
Low Best High Geological Risk
Estimate Estimate Estimate Factor (COS%)
Oil (in MMstb)
Upper Cretaceous 74 245 539 12%
Rotliegendes 178 1,160 3,124 4%
Stochastic Total Oil (MMstb) 691 1,757 3,032
Gas (in Bscf)
Miocene 53 247 680 12 - 58%
Pre - Permian 336 1,248 2,781 3%
Stochastic Total Gas (Bscf) 1,300 1,887 2,542
Stochastic Total Oil & Gas 908 2,072 3,456
(MMboe)
Prepared in accordance with the 2007 Petroleum Resources Management System
prepared by the Oil and Gas Reserves Committee of the Society of Petroleum
Engineers (SPE).
Speaking today, Rudolf Kleiber, Chief Executive Officer of Nordic said:
"This is asignificant stepforward for Nordic in its evaluation of Licence 1/13.
This third party resource audit by Xodus further validates the
significantexploration resources on the Licence in addition to confirming the
presence of the Maja gas Discovery. The combination of a number of undrilled
prospects with unusually high volume exploration potential with an unappraised
gas discoverythat could potentially be developed for early production is very
attractive. It should be noted that the shallow water depth over the
licence,and most prospects requiring less than 2000m of drilling, should enable
relatively low exploration drilling and development costs.Having now completed
this audit, and having progressed sufficiently with our interpretation activity
on the Licence, we will now proceed with our planned farm-out discussions where
we have already received stronginternational industry interest. Finally, Nordic
will continue to de-risk the material resource potential of the licence through
the commissioning of maturation, migration and seismic attribute studies"
The Directors of the Company are responsible for the contents of this
announcement.
**ENDS**
For further information please visit www.nordicenergyplc.com or contact:
Enquiries:
Rudolf Kleiber Nordic Energy PLC Tel: +44 20 7283 0179
Patrick Rocholl Nordic Energy PLC Tel: +44 20 7283 0179
Jo Turner Cairn Financial Advisers LLP Tel: +44 20 7148 7900
Liam Murray Cairn Financial Advisers LLP Tel: +44 20 7148 7900
Chris Crawford Allenby Capital Tel: +44 20 3002 2073
Kelsey Traynor Yellow Jersey PR Limited Tel: +44 7799 003 220
Dominic Barretto Yellow Jersey PR Limited Tel: +44 7768 537 739
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.
Xodus Group Limited
Xodus is an independent, international energy consultancy. Established in 2005,
the company has 600+ subsurface and surface focused personnel spread across
thirteen offices in Aberdeen, Anglesey, Dubai, Edinburgh, Glasgow, The Hague,
Houston, Lagos, London, Orkney, Oslo, Perth and Southampton.
The wells and subsurface division specialise in petroleum reservoir
engineering, geology and geophysics and petroleum economics. All of these
services are supplied under an accredited ISO9001 quality assurance system.
Except for the provision of professional services on a fee basis, Xodus has no
commercial arrangement with any person or company involved in the interest that
is the subject of this report.
Chris de Goey is Head of Management Consultancy at Xodus London and was
responsible for supervising this evaluation. Chris has a broad commercial
background in the energy industry. Starting his career in Shell Group Planning
he then joined Accenture where he worked on market entry, organisational,
marketing, performance management and operational solutions for IOCs and
European utilities. He subsequently took on management roles in venture capital
and corporate finance focusing on oil and gas and renewables. For 3 years prior
to joining Xodus, Chris led an oil and gas evaluation group, assisting banks,
private equity and operators with financing due diligence, delivering competent
person reports and feasibility studies. Chris has an MSc in Applied Physics
from Delft University and a Business degree gained at Delft and Rotterdam
universities. He is a member of the Energy Institute, the Petroleum Exploration
Society of Great Britain and the Society of Petroleum Engineers.
Glossary
MMstb million stock tank barrels of oil
Bscf billion standard cubic feet
Tcf trillion standard cubic feet
Bbl barrel