Cos Submit Application for O&G License in Danish North Sea

The Danish Energy Agency (DEA) has received an application regarding a license for oil and gas exploration covering an open acreage of the Danish North Sea from the Licensee of License 2/05. The area applied for is adjoining License 2/05. The Licensee of License 2/05 is Altinex Oil Denmark A/S (Noreco), Elko Energy A/S and The Danish North Sea Fund.

The application signals the oil companies' sustained interest in exploring for oil and gas in the Danish North Sea.

The application area is positioned in a part of the North Sea where only minor oil and gas exploration activities have been performed over the last few years and License 2/05 is the only license neighboring the area.

The Danish Minister for Climate and Energy has decided to initiate a so-called adjoining area procedure in order to issue a license for exploration for and production of hydrocarbons covering the area. The Danish Subsoil Act gives opportunity for granting a license for exploration for and production of hydrocarbons to holders of an adjoining license in cases where a prospect or discovery extents into open area. Given that the before mentioned conditions are fulfilled all license holders to adjoining areas, if any, are invited to submit an application.

Following the Minister's decision to initiate the adjoining area procedure the DEA is now processing the application. It is the Minister who issues a new license after finalization of the application processing.