11th Jul 2014 07:01
LONDON (Alliance News) - Faroe Petroleum PLC Friday said it has found a new oil region during drilling at the Bue prospect in the Norwegian Sea and has increased its resource estimates for the Pil discovery nearby.
The oil and gas exploration and development company said the Bue side-track well 6404/12-3 A was drilled to a depth of 3,656.5 metres below sea level and found an 18 metre hydrocarbon region in reservoir rocks of variable quality.
The well was set up to test the reservoir qualities of the Middle and Upper Jurassic regions, and the company said pressure data indicates no link between Bue and its Pil discovery 2.1 kilometres away, meaning the Bue site represents a separate region of oil accumulation.
Faroe Petroleum said that an extensive data acquisition programme was started on the new discovery, and the operator's preliminary estimates of the size are between 6 and 25 million barrels of recoverable oil equivalent.
The company said that estimates for the size of the Pil discovery, which was made in March and found an 80 metre region of oil, have now been updated. It said the operator of the licence, VNG Norge AS, has now increased the recoverable resources range to 72 to 172 million barrels of oil equivalent from 50 to 170 million barrels of oil equivalent.
Both of the discoveries are 33 kilometres to the south of the Njord platform, in which Faroe has a 7.5% equity interest, and are both expected to be within tie-back distance to be integrated into the platform. However, for now the two discoveries will be plugged and abandoned as planned.
"The partners are now preparing next year's exciting exploration and appraisal programme to assess the further upside potential in the licence and evaluating different development alternatives," Chief Executive Graham Stewart said in a statement.
By Tom McIvor; [email protected]; @TomMcIvor1
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