Oselvar well confirms good reservoir characteristics
Stavanger, 4 January, 2008: Norwegian Energy Company ASA (OSE:NOR), Noreco today announced the results of an appraisal well on the Oselvar discovery in license PL274 on the Norwegian continental shelf. Oil/condensate and associated gas was proven, and the well was tested with a flowing rate of 4,920 barrels of oil equivalents per day. The results confirm reservoir thickness and good reservoir characteristics. Noreco owns 15% of the license.
The operator Dong E&P Norge AS, has drilled the appraisal well 1/3-10 on the Oselvar structure in production license PL274 in Norway.
Oselvar is located in block 1/3 of the Norwegian Continental Shelf, 20 km west of the Gyda Field in southern North Sea. The Oselvar structure was discovered in the 1990s.
The objectives of the 1/3-10 appraisal well were to investigate reservoir deliverability and to acquire fluid samples for fluids characterisation. The appraisal well was drilled with the Mærsk Guardian jack-up rig in 72 meters of water, to a total depth of 3288 meters. The well was stopped in sediments of Early Paleocene age.
Oil/condensate and associated gas was proved, and a production test was performed. The reservoir thickness and the expected good reservoir characteristics were confirmed. The data collected proved oil/condensate and associated gas. The well was tested and the flowing rate was 530 Sm3 oil per day with a GOR of 476 Sm3/Sm3 and no water. This is equivalent to 4,920 barrels of oil equivalents per day.
A down flank sidetrack, 1/3-10 A, will now be drilled to establish the oil-water contact and for water sampling. The well will then be plugged and abandoned. During the summer of 2008, the rig Mærsk Guardian will be used to drill an exploration well at the Ipswich prospect, close to the Oselvar discovery.
- We are pleased with the results of this well, which takes Oselvar closer to development and demonstrates our ability to create value through acquisitions. We identified this opportunity in the middle of last year, and now hold an interest in a delineated discovery with further upside to be tested later in the year. This well also concludes the second successful well of our extensive exploration and appraisal programme of 30 wells over the next 3 years, says CEO Scott Kerr.
The owners of PL 274 are Dong E&P Norge AS (40 percent, operator), PA Resources Norway AS (30 percent), Noreco (15 percent) and Revus Energy AS (15 percent).
For further information, please contact:
Scott Kerr, CEO (+47 992 83 890)
Einar Gjelsvik, Vice President Investor Relations (+47 992 83 856)