Det norske oljeselskap ASA has provided an operational update for the third quarter 2008.
Det norske submitted in September Plan for Operation and Production (PDO) for the Froy to the Ministry of Petroleum and Energy. The PDO is expected to be approved in Q4 2008. The progress in the project is dependent upon approval by the authorities and whether the chosen contractor succeeds in securing financing for the project.
In the quarter, Det norske strengthened its position around the Froy Field in the North Sea through entering into license swap agreements concerning PL 460 and PL 463S.
Room to Maneuver
In August, Det norske entered into a Sales and Purchase Agreement concerning the sale of interests in the prospects Fongen (PL 380), Struten (PL 383), and Litjormen (PL 447). The transactions constitute part of the company’s commitment to optimize its license portfolio.
The Sales and Purchase Agreement concerning the acquisition of a 70 percent interest in PL 103B was effected as of August 1, 2008. Pursuant to the acquisition, Det norske holds a 7 percent interest in the Jotun Unit, including the Jotun Field.
In September, Det norske achieved a new record production of 2,122 barrels per day from its interests in Varg, Jotun, Enoch, and Glitne.
After the end of Q3, Det norske has sold its license interests in Goliat and Yme. These transactions have created a sound financial platform for the company's future development. The sales are consistent with the company's strategy of concentrating its efforts on own-operated licenses and areas where the company holds large ownership interests.
At the beginning of 2009, Det norske will have approximately NOK two billion available in cash and tax receivables on exploration expenses. Det norske seeks to prioritize projects where we can create the greatest value. In the North Sea Det norske has designated four areas of special strategic interest for the company; the Frøy area, Varg/Storskrymten, the Southern Vikinggraben/Draupne, and the Jotun area. Det norske will devote resources to developing these areas for new discoveries, license acquisitions, and development.
During the next 14 months, Det norske will participate in a total of 16 exploration wells, of which nine are operated by us. The first wells planned drilled are Fulla (PL 362), Freke (PL 029B), and Eitri (PL 027D).
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