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    Nido and Norwest wade into North Sea

    Thursday, September 08, 2005
    WITH the British gas industry on a high, Perth-based juniors Nido Petroleum and Norwest Energy have picked up blocks in the latest UK licensing round.

    Norwest and Nido have picked up two blocks in a 50/50 partnership with each other in the southern UK North Sea Gas Basin as part of the UK government's 23rd licensing round. In addition, Nido has also been awarded three blocks in the northern North Sea, Inner Moray Firth.

    The blocks were all awarded on a promote basis, providing two years for evaluation before drill-or-drop decisions.

    The two Southern North Sea Gas Basin permits, 47/8d and 47/13c, are contiguous and analagous to blocks already held by Nido and Norwest.

    They are also immediately along structure of the Amethyst Field (750BCF) operated by BP, and the target reservoir is the main regional gas producer, the Rotliegendes Group, said Norwest chief executive officer Joe Salomon.

    "In the meantime, work is continuing on our existing acreage in the Southern Gas Basin and we are very encouraged by the initial indications," Salomon said.

    Nido's other new blocks, located in the northern North Sea, Inner Moray Firth, were awarded to UK company Stelinmatvic Industries, with Nido as a joint venture partner.

    Norwest also has an option to buy into a Stelinmatvic block in the Inner Moray Firth, which will target oil plays in several potential reservoir sections.

    Stelinmativic was owned by well-known North Sea explorationist Steve Bushell, who acted as an advisor to Nido and Norwest, said Nido head of exploration Paul Quaife.

    "The award of the three blocks in the Northern North Sea provides us with an entry to the highly regarded Northern North Sea oil fairway, and we have now achieved a strategic position in the Southern North Sea Gas Basin," Quaife said.

    "Nido now has a number of options to create value from our UK acreage position."

    In February this year, Nido contracted energy consulting group Wood Mackenzie, based in Edinburgh, to give a detailed analysis of the gas industry in the UK from a
    commercial and marketing perspective. Based on the results of this study, Nido aggressively pursued blocks in Round 23.

    Nido said Wood Mackenzie found: gas reserves in the Southern Gas Basin were 83% depleted; production was predicted to decline from 599 million cubic feet per day in 2005 to 407Mcfd by 2007; pipeline infrastructure had 1600Mcfd of surplus throughput capacity; demand for gas in the UK was forecast to grow from 10,800Mcfd to 13,000Mcfd by 2015; supply was forecast to drop from 9,400Mcfd in 2005 to 3,800Mcfd by 2015; and UK gas prices closely tracked US prices.

    Correction: Yesterday's report on Norwest's Tennessee operations stated that a new well – Koppers-6A – was producing 25,000cfd. The actual figure was 125,000cfd. EnergyReview apologises for the error.

    Click here to read the rest of today's news stories.

    © Aspermont Limited 9/8/2005 7:51:16 AM

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