TORONTO, ONTARIO--(Marketwired - Nov. 25, 2016) -
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North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE:NUK) announces an update regarding the results of the Bagpuss Well 13/25-1 ("the Well").
Bagpuss Well Geochemistry Results:
A detailed geochemical study has been carried out by Applied Petroleum Technology ("APT") on a series of wet unwashed drill cuttings, drilling mud samples, and smears of oil recovered from several pieces of down hole testing equipment, all recovered from the Well drilled in the Inner Moray Firth area of the UK North Sea. The main conclusions arising from this study are that the oil discovered in the Bagpuss Prospect well is degraded heavy oil.
The estimated API oil range from the Well calculated by geochemistry consultants, APT was 19°-11° API based on the "dead oil" from the cuttings and oil smears. Their work indicated an overall oil quality of API of 12.5° and viscosity of 850 Cpt +- 150. Importantly, however, these values are estimates based on heavy oil field analogues as there was insufficient oil recovered to get direct measurements of API and viscosity.
The oil sampling program conducted by the Bagpuss operator, Premier Oil UK Limited ("PMO" or "Premier") on the Well did not result in a proper oil sample due to a number of factors. Oil sampling was attempted with a Saturn tool. Oil was observed in the grill of the Saturn probe as well as inside the pumps and some of this oily material was retrieved for analysis. A sample of water, that proved to be formation water, was collected from one of the Saturn tool stations believed to be in the oil leg. It was subsequently suggested that one reasons that a proper oil sample wasn't recovered was due a reaction with between the oil and the water-based mud forming an emulsion. During the sampling program, the XLD probe used was also plugged with drilling mud and there were problems with the Modular Formation Dynamics Tester sampling tool.
The presence of oil from the Saturn tool pictured below appeared to show 'live' oil and to be less viscous than the cuttings that were exposed to the drilling mud. APT speculated that "this may well be due to dissolved gas at the point in time when it came out of the hole. The ambient air temperature or tool temperature as it came out of the hole at the time may also have impacted the viscosity."
J. Marcus Marsh, Ph.D., C.Eng., NSE's Senior Reservoir Engineer commented, "The results given in the [APT] study are clearly based on 'dead' oil and thus present a worst case. However, we do know that the oil, when first observed, seemed rather livelier than dead. Unfortunately, with no worthwhile (from an engineering point of view) sample we cannot tell what the properties are at reservoir conditions, but they can be expected to be better than those given in the [APT] report. So to sum up, the well proved up a significant oil column and thereby volume in place. Frustratingly, it didn't give enough data to determine flow properties, although the porosity is good and the fluid properties are likely to be better than those stated. To this extent, the results are still encouraging. NSE still sees potential for further appraisal in the prospect."
The Company, founded in February 2007, is a UK focused oil and gas exploration and appraisal company quoted on the TSX-V. NSE, along with its wholly owned subsidiary, North Sea Energy (UK NO2) Limited, holds two high impact opportunities in the UK North Sea. These opportunities are the Bagpuss and Blofeld prospects located in blocks 13/24c and 13/25 of the UKCS.
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "forecast", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information.
In particular, there can be no certainty that analysis of the hydrocarbons and reservoir will result in commerciality being established. Factors which may cause commerciality not to be established include risks and uncertainties such as analysis concluding that the hydrocarbons are not of a commercially interesting grade, logistical challenges associated with extracting in the North Sea, oil prices, access to financing (for a full list of risks please refer to our financial statements and management discussion and analysis filed on www.sedar.com).
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