Danish exploration well spudded
Stavanger 9 December 2014: Drilling of the Xana exploration well in licence 9/95 on the Danish continental shelf has started. Norwegian Energy Company ASA (Noreco) is partner in the licence with an ownership of 20.1 per cent.
The licence is located close to the gas discovery Svane. The well is being drilled by the jackup drilling unit Noble Sam Turner. The main target is upper Jurassic sandstones, ca 4 600 metres below the seabed. Drilling time to target depth is estimated to approximately 140 days.
“While some have had their attention on the company’s financial challenges recently, our exploration and operations experts have focused on ongoing business and concentrated on preparations for this exploration well. They have done a good job,” says Tommy Sundt, CEO of Noreco.
Noreco estimates that chance of success of the Xana well is 27 per cent and that the prospect contains between 130 and 235 million barrels of oil equivalents gross, most of it gas. This would correspond to approximately 35 million barrels of oil equivalents net P50 to Noreco.
Maersk Oil is the operator for the licence with an ownership of 42.6 per cent. Noreco owns 20.1 per cent through the Danish subsidiary Noreco Oil Denmark A/S, DONG E&P owns 27.3 per cent while Danoil Exploration owns the remaining 10.0 per cent.
Contact:
Tommy Sundt, CEO. Tel.: +47 992 83 900
Odd Arne Slettebø, CFO. Tel.: 992 83 900
Geir Arne Drangeid, IR contact. Tel.: +47 913 10 458
Email: investorrelations@noreco.com
This information is subject of the disclosure requirements pursuant to section of 5-12 of the Norwegian Securities Trading Act
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About Norwegian Energy Company ASA
Noreco is an independent Norwegian oil company. The company's focus is to explore, develop and produce oil and gas in the North Sea region. Since incorporation in 2005, the company has grown through licensing rounds, exploration and acquisitions. Noreco operates in Norway, Denmark and United Kingdom, and employs 53 oil and gas professionals. Noreco is listed on the Oslo Børs (ticker NOR). For further information, please visit: www.noreco.com.