Phillips Begins Well Testing of Svane-1

The drilling of Svane-1 is completed, having reached a final total depth of 5952 meters at the end of April. Preparations are now underway for testing of one of the deepest exploration wells in the North Sea.

The Svane-1 well is located in Exploration License 4/98 on the Danish continental shelf. Drilling started near the end of August 2001. The well was drilled 300 meters deeper than originally planned.

Log and sample data from the well show that hydrocarbons are present, says Flemming Jorgensen, Exploration Manager. The jackup, Ensco 70 is preparing to test the well and the tests are expected to last slightly more than two months. Jorgensen says that the flow rate and other data gathered during testing will be essential to evaluating Svane's commerciality.

Wells that are more than five kilometers deep are very expensive and it is therefore of vital importance that the reservoir has good production properties, says Jorgensen, who is cautiously optimistic. He adds that the well has been exceptionally demanding, and that the abundance of hydrocarbon shows (indicating gas and condensate) has been especially encouraging.

Svane-1 is the second well drilled by Phillips on the Danish shelf after being awarded the operatorship of three exploration licenses in 1998. The first well (in license 5/98) resulted in the Hejre find, which is currently being evaluated. The co-venturers in the license are DONG, Veba and Hydro.