StatoilHydro Gets Okay for Drilling Activities Offshore Norway

StatoilHydro has received consent to drill exploration well 7120/8-4 using Transocean's Polar Pioneer semisub. Well 7120/8-4, Askeladd Beta in the Barents Sea, is part of production license 064. The plan is to start drilling in early November 2007, and the well should take 44 days to drill.

Askeladd Beta's proven gas reserves will become part of the reserve basis for a decision to build a new LNG Train 2 facility on Melkoya island. The plan calls for the well to be permanently plugged back.

The rig received the PSA's Acknowledgement of Compliance (AoC) in May 2004.

The Petroleum Safety Authority Norway also gave its consent for the 30/2-4S exploration well to be drilled using the West Epsilon.

The well is located on the Huldra field and is part of production license 051.

If a discovery is made, the well will be completed and converted into a production well. If the well is dry, the well will be permanently plugged.

Statoil will use the West Epsilon jackup operated by Seadrill Offshore AS (Seadrill), Stavanger, to drill and complete the well.

The Petroleum Safety Authority Norway issued an Acknowledgement of Compliance (AoC) for the West Epsilon on February 14, 2003.

Drilling and logging is estimated to take approximately 77 days and, if necessary, subsequent completion operations will take approximately 18 days.

Drilling is expected to commence after the West Epsilon has completed its ongoing activities on Ragnarrock and a visit to the shipyard in Olen. The earliest start date will be in mid/late October 2007.

Statoil was granted consent pursuant to its application on September 28, 2007.

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