Nordic Energy to Buy Offshore Exploration Licence in Denmark
Nordic Energy Plc, the ISDX Growth Market Investment Vehicle focused on low cost entry opportunities in the Danish, Norwegian and Dutch offshore oil and gas exploration and production sectors, has signed a Letter of Intent (“LOI”) to acquire a large exploration licence in the Danish North Sea (“the Danish Licence”).
The Danish Licence was originally applied for in March 2012 by NikOil Limited, a private company jointly owned by Rudolf Kleiber, Patrick Rocholl and Jens-Christian Olsen. The Danish authorities are in the final stages of processing NikOil’s application. Pursuant to the LOI, Nordic and NikOil have agreed that Nordic will acquire the Danish Licence once it is awarded to NikOil, subject to the consent of the Danish Government.
The 3,600 sq km area covered by the Danish Licence originally formed part of Danish Exploration and Production License 02-05, which was awarded in 2005 to Elko Energy Inc., a company founded by Kleiber and managed by him until 2009. Based on technical work commissioned by Kleiber whilst at Elko, the Directors of Nordic believe that the Danish Licence area is highly prospective, containing a number of different prospects and leads that have been mapped and independently confirmed by several specialists over a number of years.
For example, according to a 2010 Competent Person’s Report by Tracs International Consultancy Limited, the Danish Licence area contains, totally or partially, 6 oil prospects and leads with a range of potential recoverable resources of 805 – 7,526 million barrels and 4 gas leads with potential recoverable resources of 1,084 – 7,304 BCF gas. The mapped structures occur at a range of geological horizons, i.e. Top Chalk, Top Rotliegendes and Top Pre-Permian. Although all of the above leads and structures are deemed to be high risk (with a chance of success below 10%), the Directors believe that the very large volumes that could potentially be discovered make this area a highly attractive exploration target.
Nordic has secured an option to acquire a pseudo-3D seismic data volume covering the Danish license area, which is presently being processed. Pseudo-3D is a new technology employed in seismic processing which the Directors hope will reveal new information on the prospectivity of the license area.
Press Release, February 25, 2013