Phillips Makes New Discovery Offshore Denmark

Phillips Petroleum, operator of license 4/98, has completed the exploration well Svane-1/1A (5604/26-4) in the North Sea in co-operation with DONG E&P A/S. The well was drilled by the jack-up rig ENSCO 70 in the northeastern part of the Danish Central Graben.

The drilling was initiated on August 30, 2001 at a water depth of 59 meters.

Svane-1/1A was drilled as a vertical well with a mechanical sidetrack to a true vertical depth of 5867 meters below sea level and finalied in strata of Mesozoic age. The well has, under very hostile conditions, tested gas and condensate in sandstones of the late Jurassic period. The well is the deepest well so far drilled in Denmark. The well has thus opened new exploration targets in the deeper parts of the Danish Central Graben. The discovery size and production potential is now being evaluated.

Drilling operations have been abandoned and ENSCO 70 will, after maintenance in Esbjerg, be moved to a position in the western part of the Ringkobing-Fyn High to drill exploration well Oscar-1 in license 12/98.

The 4/98-licence group consists of the following companies: Phillips Petroleum International Corporation Denmark 30.00%; Saga Petroleum Danmark AS (Share will be transferred to Norsk Hydro) 25.00%; Veba Oil and Gas Denmark GmbH 25.00%; DONG Efterforskning og Produktion A/S 20.00%