Longboat Energy Strikes Oil, Starts Drilling For More
Longboat Energy, a company created by former Faroe Petroleum management, has struck oil in a well located in the Norwegian part of the North Sea and started drilling another.
Longboat Energy said that it made a discovery at the Rødhette exploration well. Production license 901 where the well is located is operated by Var Energi with a 50 percent stake while partners Longboat and Concedo hold 20 percent each. Equinor holds the remaining 10 percent.
The exploration well, designated 7122/6-3 S, encountered a 95-foot hydrocarbon column in the primary target in the Middle Jurassic Stø Formation. The top of the reservoir was reached close to prognosis containing high net-to-gross, moderate to good quality sandstone. Data acquisition indicates a gas column of around 60 feet in the well over an oil rim.
Preliminary estimates by the operator place the size of the discovery between 9 and 12 mmboe recoverable. The well was drilled on time and on budget and will now be plugged and abandoned as planned.
As the Rødhette volumes are at the lower end of pre-drill expectations, both existing discoveries and additional prospectivity in the area will be considered in the evaluation of the commercial development potential of Rødhette through existing regional infrastructure. The well was drilled around 18 miles north of the Goliat field.
To get in on the action in a seven-well exploration program in Norway, the company entered into agreements with three separate companies structured as three farm-in transactions. Rødhette, already announced as a discovery was agreed as a farm-in with Var Energi. The second one, Egyptian Vulture, is operated by Equinor and spud last month.
Longboat also announced the spud of the third well – Mugnetind – with the Maersk Integrator jack-up rig, located in production license 906, which is operated by Aker BP with a 60 percent stake. DNO and Longboat are partners and hold a 20 percent stake each.
The Mugnetind prospect is estimated to contain gross mean prospective resources of 24 mmboe with further potential upside estimated at 47 mmboe. The chance of success associated with the Mugnetind prospect is 51 percent with the key risks being reservoir presence and quality. The well is expected to take approximately five to seven weeks to drill with an estimated net cost to Longboat of around $7 million.
“We are pleased to have made a hydrocarbon discovery with our first exploration well following our transformative acquisitions made this summer. We look forward to working together with the operator to use the data collected to assess the development potential for Rødhette alongside existing discoveries and further exploration potential in the area,” Helge Hammer, Chief Executive of Longboat, said.
“We are in a very busy period of drilling with Egyptian Vulture and Mugnetind exploration wells now both underway with the potential to create significant shareholder value,” he added.
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