08.08.2011 08:49:08 CET

North Energy ASA confirms successful formation test at PL 535 Norvarg in the Barents Sea

Total E&P Norge AS, operator of production license 535, has completed the drilling of wildcat well 7225/3-1 and formation test in the Kobbe formation. The results indicate promising estimates.

The well is drilled in the Barents Sea, about 250 kilometers north of Melkøya outside Hammerfest. It was drilled to a vertical depth of 4150 meters below sea level, and was terminated in the Permian rocks of the Ørn Formation.

"North Energy views the preliminary results from the well as positive. The discovery will now be evaluated thoroughly by the operator and partners before we can estimate more accurate volumes and commerciality. The discovery is a confirmation of our belief in the petroleum deposits in the Barents Sea", says Erik Karlstrøm, Managing Director of North Energy ASA.

The primary objective for the well was to prove hydrocarbons in reservoir rocks within the Triassic Snadd and Kobbe formations. Secondary objectives were in the Middle Jurassic age Stø formation, Triassic Havert formation, and Permian Bjarmeland formation. The well proved gas in both the Jurassic and Triassic intervals and an extensive static and dynamic data acquisition program was performed.  Moveable hydrocarbons were encountered in the Stø, Snadd, and Kobbe formations.  
For the Kobbe formation, hydrocarbons were encountered over a 400-meter interval, in reservoir rocks with variable quality. For the Havert formation, hydrocarbons were encountered over two main intervals (80m and 90m) in reservoir rocks of poor quality.

A production test was done in the upper part of the Kobbe formation in order to investigate reservoir productivity.  A production rate of 180,000 standard cubic meters (Sm3) per day of gas through a 44/64 inch choke was obtained during the main flow period. The gas contains very low CO2, H2S and N2.

Preliminary estimates by the operator indicate the size of the gas discovery at between 10 and 50 billion Sm3 recoverable gas.  

The well is the first exploration well in production license 535 - Norvarg. The license was granted in 2009, as part of the 20th licensing round. Total E&P Norge AS is the operator of the license with 40% share, while North Energy ASA is a partner with its 20% share. Other license partners are Det norske oljeselskap ASA (20 %) and Rocksource ASA (20 %).

More details on the Norvarg discovery will be provided on 18 August in connection with North Energy's Q2 2011 results presentation.


Erik Karlstrøm, Managing Director, North Energy ASA.

Mob: (+47) 476 52 990 | E-post: erik.karlstrom@northenergy.no

Knut Sæberg, Chief Financial Officer, North Energy ASA.

Mob: (+47) 918 00 720 | E-post: knut.saeberg@northenergy.no

Kristin Ingebrigtsen, Director of Strategy and PR, North Energy ASA.
Mob: (+47) 926 05 601 | E-posts: kristin.ingebrigtsen@northenergy.no

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