UK: North Sea Energy farms into two prospects

A subsidiary of North Sea Energy Inc., Toronto, has signed a farm-in agreement with Maersk Oil North Sea UK Ltd. to participate in the initial exploration and appraisal of North Sea Energy’s UK North Sea blocks 13/24c and 13/25.

The blocks, which contain the Bagpuss and Blofeld prospects, were awarded to NSE UK2, and EnCounter Oil Ltd. as license administrator, under Promote License P.1943 in the UKCS 27th round. NSE UK2’s working interest is 40%, EnCounter Oil 40%, and Groliffe Ltd. subsequently exercised its right to back in for a 20% working interest.

The prospects are on the Halibut horst, a well-defined basement high in Moray Firth. Maersk Oil is to carry 100% of NSE’s costs, subject to a cap, to drill the initial Bagpuss prospect exploratory well including a site survey and agreed past costs. Maersk Oil also will 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 and NSE will retain 15% in the blocks. It is expected that the initial well at Bagpuss could spud in 2014.

NSE has been advised that Encounter Oil and Groliffe have reached agreements with a farm-in partner. Encounter Oil will retain a 15% working interest and Groliffe a 7.5% working interest, with the farm-in partner acquiring a 37.5% working interest in the blocks.

The transactions are subject to the approval of UK Department of Energy and Climate Change and third party consents.

North Sea Energy produces light oil from Jacky field in the Inner Moray Firth off the Scottish coast and has acquired an interest in nine North Sea blocks.

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