'Significant' Discoveries Made Offshore Norway



'Significant' Discoveries Made Offshore Norway
OMV Norge AS encounters 'exploration success' at well 6506/11-10, located offshore Norway in license PL 644B.

OMV Norge AS announced Wednesday that it has encountered ‘exploration success’ at well 6506/11-10, located offshore Norway in license PL 644B.

The well targeted two formations; the Cretaceous Hades prospect and the Jurassic Iris prospect located directly underneath. OMV said the well discovered gas and condensate in both exploration targets with ‘very good’ reservoir properties.

Preliminary results indicate a discovery size of between 20 and 115 million recoverable barrels of oil equivalent (boe) for Hades, and between 20 and 130 million recoverable boe for Iris, according to OMV.

“I am extremely pleased with the well result and this is a testament to our drilling competency and exploration capability within OMV. Hades and Iris could be of significant size,” Knut Mauseth, managing director of OMV (Norge) AS, said in a company statement.

Gary Ingram, vice president of exploration at OMV, said the Hades and Iris exploration discovery well was ‘very pleasing’ and the result of ‘excellent geosciences work’.

OMV’s partner in license PL 644B, Faroe Petroleum, also labeled the discoveries at exploration well 6506/11-10 as ‘significant’.

“The Hades and Iris prospects, previously known as Aerosmith and Zappa respectively, have been part of Faroe’s portfolio for many years, forming the main part of a successful APA license application made in 2009,” Graham Stewart, chief executive of Faroe Petroleum, said in a company statement.

“It is extremely gratifying to see both of these prospects delivering significant discoveries, further confirming Faroe’s consistent and industry-leading exploration track record, which has directly and indirectly generated approximately 75 percent of our 2P reserves,” he added.

Faroe revealed that all data from the two discoveries is currently being assimilated and a follow-up appraisal program is now being considered by the operator and partners.

OMV (Norge) AS is the operator of PL 644/644 B with a 30 percent working interest. The partners are Statoil Petroleum AS (30 percent), Faroe Petroleum Norge AS (20 percent) and Spirit Energy Norge AS (20 percent).

Exploration well 6506/11-10 was drilled by the Deepsea Bergen semi-submersible drilling rig.

DNO in Faroe Petroleum Interest Acquisition

On the day of the Hades and Iris discovery announcement, Norwegian oil and gas operator DNO ASA revealed that it had agreed to acquire 15.37 percent of the share capital of Faroe Petroleum from Delek Group Ltd.

The acquisition covers all Faroe Petroleum ordinary shares held by Delek, totaling 56,355,825, at a price of $1.76 (GBP 1.25) per share for an aggregate purchase price of $98,948,852 (GBP 70,444,781).

“DNO now has decided to build a long term strategic shareholding in Faroe Petroleum,” DNO said in a statement on its website.

Following Norway's latest Awards in Predefined Areas (APA) 2017 licensing round, DNO holds interests in 19 exploration licenses offshore Norway and the United Kingdom.



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