North Sea Energy Inc.

North Sea Energy Inc.

November 10, 2008 16:42 ET

North Sea Energy (UK) Limited Receives Approval for the Field Development Plan for the Jacky Oilfield

TORONTO, ONTARIO--(Marketwire - Nov. 10, 2008) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

North Sea Energy Inc. ("North Sea Energy" the "Company") and its wholly owned subsidiary North Sea Energy (UK) Limited, an independent oil & gas company with exploration and development assets in the UK sector of the North Sea and its partner Ithaca Energy (UK) Limited are pleased to announce that the UK Department for Energy and Climate Change ("DECC") has approved the Field Development Plan for the Jacky oilfield.

The Jacky oilfield is owned 10% by North Sea Energy and 90% by Ithaca. It is situated 10 km North East of the Beatrice field in the Inner Moray Firth area of the United Kingdom Continental Shelf. It contains 5.2 million bbls of Proven and Probable reserves (source - Sproule International Ltd). The field will be developed via a small wellhead platform with one production well initially, assisted by downhole pumping. Production rates are expected to commence at approximately 7,500 bopd.

The platform was delivered to the nearby Cromarty Firth early last week in anticipation of field development approval. Installation of the platform will proceed as soon as weather permits and pipelines are planned to be installed this December. Although additional approvals will be required from DECC for the final tie-in of the well, it is expected to be tied-in and brought on stream early in 2009.

This announcement coincides with the handover of the Beatrice oilfield facilities from Talisman Energy UK Ltd to Ithaca operatorship. The Beatrice oilfield facilities are leased in order to facilitate Jacky production to be processed on Beatrice and exported via the Beatrice pipeline to the Nigg Oil Terminal for storage and offloading to tankers.

Craig Anderson, CEO of North Sea Energy said:

"We are thrilled to receive the approval from DECC of the Jacky Field Development Plan. This is another major milestone for North Sea Energy and brings us closer to first oil and cash flow."

ABOUT NORTH SEA ENERGY (UK) LIMITED

North Sea Energy (UK) Limited is a wholly owned subsidiary of North Sea Energy Inc., which is a Canadian oil and gas exploration and development company active in the United Kingdom's Continental Shelf (UKCS).

Contact Information

  • Auburn Partners Inc., Investor Relations
    North Sea Energy Inc.
    (647) 430-8760
    Website: www.northseaenergy.ca