VNG Norge hits oil in Norwegian Sea

July 11, 2014

VNG Norge hits oil in Norwegian Sea

STAVANGER, Norway -- VNG Norge AS, operator for production license 586 is about to complete drilling appraisal well 6406/12-3 B on the oil and gas discovery 6406/12-3 S (Pil), and exploration well 6406/12-3 A on the Bue Prospect.

The Pil discovery was proven in an Upper Jurassic reservoir in spring 2014. The appraisal well 6406/12-3 B was drilled 1.7 km northeast of the discovery well 6406/12-3 S and the objective was to investigate the extent, thickness and properties in the Middle and Upper Jurassic reservoir, together with the extent of the oil/water contact. The well encountered an 82-m oil column in Upper Jurassic reservoir rocks of good quality. The oil water contact was encountered deeper than expected. The resource estimate for the oil and gas discovery in 6406/12-3 S is now adjusted to between 8.8 and 21.1 million Sm3 recoverable oil and condensate and between 2.7 and 6.1 billion Sm3 recoverable gas.

Exploration well 6406/12-3 A was drilled 2.1 km northeast from discovery well 6406/12-3 S and the objective was to investigate the extent, thickness and reservoir properties in Middle and Upper Jurassic reservoirs in the Bue prospect and to establish the pressure regime and hydrocarbon/water contact. The well encountered an 18-m hydrocarbon column in reservoir rocks of good to very good quality.

Pressure data indicates no communication between the Pil and Bue discoveries and Bue has therefore proven a separate accumulation.

The preliminary estimates of the size of the discovery is between 1 and 4 million Sm3 recoverable oil and condensate.

The 6406/12-3A and 6406/12-3B wells were not production tested, but an extensive data acquisition program was carried out, including a fluid sample from 6406/12-3 A.

This is the second and third well in production license 586. The license was awarded February 4, 2011 (APA 2012).

The wells 6406/12-3 B and 6406/12-3 A were drilled to a depth of 3,967 m and 3,656.5 m below sea level. Both wells were terminated in the Jurassic Melke Formation. The water depth is 324 m. The wells will be permanently abandoned.

The wells 6406/12-3 A and B were drilled by the Transocean Arctic drilling facility which will now proceed to production license 555 in the northern part of the North Sea to drill well 33/2-1 , where Lundin Norge AS is the operator.

“The appraisals have given us essential better understanding of the Pil-discovery and the good news about upside volumes in Bue. We strongly believe there is a further upside in the license and have thus ensured the possibility of drilling an additional two wells with the same rig in 2015. In parallel we are now preparing next year’s exploration program and evaluating different development alternatives. The results from the planned exploration wells will be decisive for the choice of production solution in a possible development of Pil, Bue and hopefully new discoveries next year,” said Atle Sonesen, Managing Director in VNG Norge AS

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