Equinor Spins Drill Bit At Egyptian Vulture Well
Norwegian oil and gas major Equinor has spudded the Egyptian Vulture exploration well in the Norwegian Sea.
Longboat Energy, a recently formed exploration and production company and Equinor's partner in the project with a 15 percent stake, announced the spud in a statement on Tuesday.
Equinor is using Seadrill's West Hercules semi-submersible drilling rig to drill the well and the spud was done on September 20, 2021.
The Egyptian Vulture well is targeting gross mean prospective resources of 103 mmboe with further potential upside to bring the total to 208 mmboe on a gross basis. The chance of success associated with this prospect is 25 percent with the key risk being related to reservoir quality and thickness.
Longboat Energy, a company created by former Faroe Petroleum management, added that the well was expected to take up to four weeks to drill with a pre-carry net cost to Longboat of around $5 million.
Upon success, there is the potential to provide low-CO2 blending gas to the nearby Equinor-operated infrastructure (Åsgard) allowing for the possibility of rapid monetization.
“I am pleased that we are already underway with exploration drilling so soon after the completion of our first transactions last month,” Helge Hammer, CEO of Longboat, said. “We expect to be drilling three wells over the next few weeks with the Rødhette and Egyptian Vulture wells already underway and Mugnetind expected to spud shortly, in an extremely busy and exciting time for the company. Drill results from these first three wells are expected before the end of the year and have the potential to create significant shareholder value.”
"The exploration program over the next 18 months offers shareholders a unique opportunity to gain exposure to a drilling portfolio of seven wells targeting net mean prospective resource potential of 104MMboe with an additional 220 MMboe of upside which provides the potential to create a Net Asset Value of over $1 billion based on precedent transactions in the Norwegian North Sea for development assets," Hammer added.
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