StatoilHydro Makes Gas Discovery on Alve

StatoilHydro has confirmed the existence of gas and condensate on the Alve field in the Norwegian Sea around 16 km southeast of the Norne field.

Based on a preliminary estimate, the discovery includes three to five billion cubic meters of gas. A thin oil zone was also proven below the gas.

"The find is encouraging and supports our firm belief in other opportunities we are evaluating in the vicinity," says Ørjan Birkeland, vice president for infrastructure exploration north.

Extension drilling of a production well

Extension drilling was carried out in this production well. Due to come on stream in January 2009, it is the first production well on the Alve field.

The purpose of the exploration extension was to prove hydrocarbons in a reservoir located deeper in mid-Jurassic rocks than the resources proven in previous exploration wells on the Alve field.

Gas and condensate in sandstone of mid-Jurassic rock were proven during the extension drilling.

Temporary plugging of the well

The drilling of well 6507/3-5S has been completed, and the well will be temporarily plugged.

A completion of the previously proven reservoir is planned for the autumn of 2008.

The gas is to be transported to the Norne field. The licensees will evaluate how the additional resources proven in the extension drilling can be recovered.

Data gathering

Formation testing was not performed in the well, but comprehensive data collection and sampling have been carried out.

The well was drilled to a vertical depth of 3,834 meters below sea level, and was completed in lower Jurassic rocks. The water depth is 368 meters. The Ocean Vanguard rig is leaving the location to drill an exploration well for StatoilHydro on the Irish continental shelf.

The partners in PL159B are StatoilHydro (operator) with an 85 percent interest and DONG with a 15 percent interest.

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