PGS Expands Drilling Activity on the Varg Field

Petroleum Geo-Services reports that Pertra AS, a wholly owned subsidiary of PGS ASA, has exercised an option with Maersk Contractors for two additional production wells in the Varg field in direct continuation of the A6-A production well currently being drilled. The drilling program is expected to be concluded early July this year. The field is located in Production Licence 038 (Block 15/12) in the Norwegian sector of the North Sea.

The additional production wells are a result of the previously announced successful appraisal well 15/12-14, confirming the modified reservoir model developed by Petra through PGS Reservoir and innovative seismic from PGS. The production of the Varg Field is approximately 25,000 barrels per day, following the successful completion of the new well 15/12-14. The additional wells are expected to bring production above 30,000 barrels per day, and extend the field life beyond 2005.

PGS Production AS, using it's FPSO "Petrojarl Varg", is producing the Varg field.

Pertra AS is the operator of Production License 038 with 70% interest and co-venturer Petoro AS holds the remaining 30%.