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Nordic Energy accepts transfer of largest licence in Danish North Sea

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Nordic Energy accepts transfer of largest licence in Danish North Sea

Wed, 04 September 2013
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Nordic Energy accepts transfer of largest licence in Danish North Sea

Nordic Energy, which makes investments in the North Sea oil and gas sector, has acquired the largest exploration and production licence in the Danish North Sea, covering an area of 3,600 sq km in a proven hydrocarbon system.

The transfer of the licence comes after it was awarded by the Danish government to NikOil, a private company jointly owned by the directors of Nordic.

The licence is located close to existing production and multiple discoveries. Previous evaluations have estimated that 10 of the prospects hold potential recoverable resources of 1.2bn barrels of oil and 2.8trn cubic feet of gas.

Chief Executive Officer Rudolf Kleiber said: "Nordic Energy is now the operator of the largest exploration and production licence in the Danish North Sea. Licence 01/13 is considered highly prospective as, based on existing seismic, a number of very large structures have been mapped updip from the Central Graben, the source of all the oil found in the Danish, Norwegian and UK North Sea.

"Management has made previous multiple commercial field discoveries in the Nordic area and we intend to immediately apply our combined experience and expertise to further define the licence's company-making prospectivity towards drill ready status.

"The licence comes with access to an extensive seismic database which at today's prices would cost in excess of $20m. We are currently using advanced technologies to re-process a significant amount of this data to generate a pseudo 3-D seismic dataset."

The group added that it believed the transfer would help it to close the large gap between its current market capitalisation of less than £2m and the historic investment made to date in the area covered by the licence.

NR

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