Update on Norvarg appraisal well

Det norske oljeselskap ASA, as partner in PL 535, announces that Total E&P Norge AS as operator of PL 535 is in the process of concluding the drilling of appraisal well 7225/3-2 on the Norvarg gas discovery made in 2011.

The appraisal well was drilled approximately 275 kilometres north of the Hammerfest and five kilometres northeast of the Norvarg discovery well, in a water depth of 377 metres. The objective of the well was to delineate and appraise the reservoir quality and productivity of the Triassic Kobbe Formation of the Norvarg gas discovery.

The appraisal well encountered a thick gas interval in the Kobbe Formation with variable reservoir quality, more sand, and better porosities than in the 7225/3-1 well. However the reservoir productivity was somewhat lower than expected.

Two formation tests were carried out in the upper and lower parts of the Kobbe Formation with a maximum production rate of 175,000 Sm3 gas per day.  Extensive data acquisition, wire line logging, coring and sampling has been carried out. The well has been completed with down hole pressure gauges capable of transmitting data after abandonment.

First assessment of the appraisal well results indicates that the resource range may have to be reduced on Norvarg, as compared to the initial evaluation from the discovery well.

However, work will now be undertaken by the partnership to analyze and interpret the acquired data to further evaluate the estimated recoverable hydrocarbons on the structure and potential future development options.  This work will be based on the results from the long duration pressure build-up test as well as a complete evaluation of all the acquired data.

The well was drilled to a vertical depth of 2171 metres below sea level and terminated in the Klappmyss Formation of Early Triassic age.  The well will be permanently plugged and abandoned.

This is the second well in PL535. The license was awarded in the 20th licensing round in 2009. Well 7225/3-2 was drilled using Ocean Rig’s Leiv Eiriksson semi-submersible rig.

The partners in the license are:
Total E&P Norge AS (Operator, 40 per cent interest*),
North Energy (20 per cent),
Ithaca Petroleum Norge (13 per cent),
Statoil (10 per cent*),
Det norske (10 per cent*)
Rocksource Exploration Norway (7 per cent).

*Pending government approval.

Contact:
Knut Evensen, VP Investor Relations, tel.: +47 950 77 622