OilVoice - Sagex Submits Appliocation in the 1st Icelandic Licensing Round

Sagex Submits Appliocation in the 1st Icelandic Licensing Round

Monday, May 25, 2009

Sagex Petroleum has submitted an application for an exploration and production license in the 1st Icelandic Licensing Round covering the Dreki Area. The application is a joint venture between Sagex Petroleum Iceland hf and Lindir Exploration hf and on a 50/50 basis with Sagex acting as operator.

The Dreki Area is a part of the Jan Mayen Microcontinent, which geologically belongs to the North Atlantic passive volcanic margins and with similar geology as offshore Mid Norway. Sagex has worked the North Atlantic in both academia and oil industry for decades. Detailed evaluation of the Dreki Area has been a continuous effort since 2001. Sagex was instrumental in the acquisition of the Inseis 2001 seismic survey and has also reprocessed seismic lines from the old NPD / Orkustofnun surveys resulting in significant improvement.

Offshore Iceland is considered as one of the last unexplored regions in the world with a huge hydrocarbon potential and Sagex has great expectations that it will prove very prolific and become one of Sagex’s focus areas.

License awards are expected in late October, 2009.

Results of the First Licensing Round 2009 for the northern Dreki area

The closing date for the First Licensing Round for the northern Dreki area was 15 May 2009. The National Energy Authority (NEA) of Iceland received applications from
• Aker Exploration
• Sagex Petroleum and Lindir Exploration

Taken together, the applications are for blocks, complete or partial:
• IS6708/1
• IS6708/2
• IS6808/11
• IS6909/11

Blocks IS6808/11 and IS6909/11 are within the area of the agreement of 22 October 1981 between Norway and Iceland on the continental shelf between Iceland and Jan Mayen.

During the Licensing Round the difficult conditions in the world economy as well as the low oil prices have undoubtebly affected other parties that were interested in the Licensing Round.

The applications that the NEA received will be evaluated according to the criteria published in the documents for the Licensing Round and the decision on the issuing of licenses is planned to be finalized by the end of October, 2009.

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