North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE:NUK) is pleased to announce that through its wholly owned subsidiary, North Sea Energy (UK NO2) Limited ("NSE UK2"), it has entered into a farm-in agreement with Maersk Oil North Sea UK Limited ("Maersk Oil") to participate in the initial exploration and appraisal of the Company's UK North Sea blocks 13/24c and 13/25 ("Bagpuss Prospect").
Blocks 13/24c and 13/25, containing the Bagpuss and Blofeld prospects, were awarded to NSE UK2 and EnCounter Oil Ltd. (as Licence Administrator) under Promote Licence P.1943 in the UKCS 27th Licensing Round effective from 1st January 2013. NSE UK2's working interest in the licence is 40%, EnCounter Oil Ltd. 40%, and Groliffe Ltd. subsequently exercised its right to back in to the licence for a 20% working interest. The Prospects are located on the Halibut Horst which is a well-defined basement high within the Moray Firth, in the North Sea, United Kingdom.
Under the farm-in agreement, Maersk Oil is to carry 100% of NSE's costs, subject to a cap, to drill the initial Bagpuss Prospect exploration well including a site survey and agreed past costs. In addition, Maersk Oil is to 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 a 15% working interest in blocks 13/24c and 13/25. It is expected that the initial well at Bagpuss could spud in 2014.
NSE has been advised that its partners in the Bagpuss and Blofeld Prospects, Encounter Oil Ltd. and Groliffe Ltd., have successfully reached agreements with a farm-in partner. Encounter Oil Ltd. will retain a 15% working interest and Groliffe Ltd. will retain a 7.5% working interest, with their farm-in partner acquiring a 37.5% working interest in blocks 13/24c and 13/25.
The proposed transactions are subject to the approval of UK Department of Energy and Climate Change (DECC) and third party consents.
"We are very excited to have successfully farmed-out the Bagpuss Prospect to a world-class partner in Maersk Oil for the initial exploration and appraisal of the Prospect," stated Craig Anderson, CEO of the Company.