BG Gets Green Light to Delineate Old Oil Discovery in North Sea

Norwegian Petroleum Directorate

The Norwegian Petroleum Directorate has granted BG Norge AS a drilling permit for wellbore 17/12-4.

Wellbore 17/12-4 will be drilled from the West Alpha semisub at position 58 degrees 10'37.58"N and 3 degrees 55'11.05"E.

The drilling program for wellbore 17/12-4 applies to the drilling of an appraisal well in production license 407. The well will delineate the old oil discovery 17/12-1, Bream. proven in 1972 by Phillips Petroleum Company. BG Norge AS is the operator with a 40 percent stake.

In March 1972, Bream's exploration well was drilled by the Ocean Viking semisub to a total depth of 4,298 meters and encountered middle Jurassic age at 2,292 meters. The well was permanently abandoned on June 21, 1972 when Bream was declared a discovery. BG Group acquired operatorship of Block 17/12 in 2007.

Licensees are Skeie Energy AS, Spring Energy Exploration AS and Premier Oil Norge AS, who all have 20 percent stakes. Production license 407 was awarded in APA 2006.

The area in the production license consists of parts of the blocks 17/8, 9, 11 and 12 northwest of the Yme field in the southeastern part of North Sea. Well 17/12-4 is the first exploration well in the production license.

The drilling permit is granted on the condition that all other permits and consents required by other authorities have been secured before the drilling activity commences.