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NORECO (OSL:NOR) Stavanger, 8 August, 2008: Norwegian Energy Company ASA (Noreco - OSE:NOR), Oil has been discovered in the South Tor Pod exploration well in Denmark, where Noreco owns a 6.56% share.
The South Tor Pod well discovered oil bearing chalks. The discovery is located 5 km southeast of the producing South Arne field in Denmark, in license 7/89 awarded in 1989. The licensees will now evaluate the size and productivity of the discovery. Noreco's estimate of the size of the prospect before drilling was 32 million barrels of oil equivalents gross.
- We are very pleased about the successful well at South Tor Pod. This is one of a number of exploration wells near our producing fields. Currently, we are drilling two exploration targets near the Brage field in Norway, and also plan to explore around the Siri field in Denmark. These near field exploration wells are important to Noreco as they can add near term production and reserves, says CEO Scott Kerr.
South Tor Pod is part of Noreco's extensive exploration and appraisal drilling programme, where eight of the first nine wells have been successful.
Facts about well South Tor Pod well (Rigs - 4) Hess Denmark APS, operator of license 7/89, are finalising well operations on the South Tor Pod well.
The purpose of the well was to explore for hydrocarbons in the Upper Cretaceous Chalk within a structural closure as well as an area south of and down flank constituting a potential stratigraphic oil accumulation trap. The well was not formation tested via rig equipment, but extensive reservoir data collection and sampling was conducted.
All well objectives were achieved, including a sidetrack to evaluate an upside further south of the primary target.
The well was drilled to a vertical depth of 2968 metres below the sea level and was concluded in the Cretaceous Hod formation. Water depth at the site is 55 metres and the well was drilled by the jack-up rig Ensco-70.
A development of the South Tor Pod area will constitute an integrated part of the ongoing continued development planning of the South Arne main field as well as the Northern Extension (SANE) of the field which was appraised in 2006 by Rigs-3 including a number of sidetracks.
Facts about the South Arne field The South Arne oil Chalk field in Denmark was put on production in 1999 and is currently developed with 19 long horizontal producers and injectors. Produced oil and gas are processed at the platform with oil being offloaded by ship from the storage tank and gas is exported by pipeline to Denmark. Production from the field was approximately 25 000 barrels of oil equivalents per day in 2007, and at the end of 2007 a total of approximately 140 million barrels of oil equivalents had been produced. Current field life is estimated to year 2027 with considerable reserves remaining. Owners of the South Arne licence 7/89 are Hess (Operator, 57.48%), Dong E&P (34.38%), Noreco (6.56%) and Danoil (1.58%)
For further information, please contact: Scott Kerr, CEO (+47 992 83 890) Einar Gjelsvik, Vice President Investor Relations (+47 992 83 856) www.noreco.com
