North Sea Energy Starts Bagpuss Site Survey

North Sea Energy Inc., through its wholly owned subsidiary North Sea Energy (UK N02) Ltd. (NSE-2), has announced that the Bagpuss Site Survey has begun and should be completed in the next 7 days.

The purpose of the survey is to collect high resolution digital seismic, soils data and a full range of environmental data that is required by DECC prior to drilling of the initial Bagpuss well. The Bagpuss well is currently scheduled to be drilled in Q3 2015, subject to normal approvals.

In addition, the Bagpuss joint-venture partners recently received approval from DECC to move into the second phase of the Bagpuss Promote licence (4 year initial term, drill or drop decision by end 2nd year) by demonstrating financial, technical and environmental capacity to be in place, in addition to a firm commitment to drill the Bagpuss well. NSE-2 holds a 15 percent working interest in the Bagpuss and Blofeld prospects located in blocks 13/24c and 13/25, and is funded through its farm-in agreement with Maersk covering 100% of NSE’s drilling costs, subject to a cap, for the initial Bagpuss well and the site survey costs.

In addition, Maersk is covering 50% of NSE’s costs, subject to a cap, on a Bagpuss subsequent well, should one be drilled. Other Joint venture partners include: Premier Oil Plc., Maersk Oil UK Ltd., EnCounter Oil, and Groliffe Limited hold the remaining 37.5, 25, 15, and 7.5 percent working interests in the Blocks, respectively.

Press Release, September 18, 2014