Oil & Gas Discovery in Rødhette Exploration Well, Barents Sea
Norwegian oil and gas exploration and production company Vår Energi confirms discovery of oil and gas in the Rødhette exploration well in the Goliat area in the Southern Barents Sea. The exploration well proved successful with the latest preliminary estimates showing volumes between 9-12 million barrels of recoverable oil equivalents.
The discovery is significant for the area says Torger Rød, Vår Energi CEO: “With the Rødhette result, Vår Energi celebrates a sixth exploration discovery this year, as the exploration team continue a successful 2021 campaign. The licensees will now assess the discovery, as well as maturing other targets in the license and the surrounding area in order to add resources for a future tie-back to Goliat.”
Rødhette was drilled in PL 901 by Scarabeo 8. The well encountered an oil & gas column of about 28 meters in the Realgrunnen subgroup within good to moderate reservoir sandstones (1882 meters below sea level).
The exploration well 7122/6-3 S encountered a 29-metre hydrocarbon column in the primary target in the Middle Jurassic Stø Formation. The top of the reservoir was reached close to prognosis containing high net-to-gross, moderate to good quality sandstone. Data acquisition indicates a gas column of approximately 18 metres in the well over an oil rim.
Preliminary estimates by the operator place the size of the discovery between 9 and 12 mmboe recoverable (gross). As the Rødhette volumes are at the lower end of pre-drill expectations, both existing discoveries and additional prospectivity in the area will be considered in the evaluation of the commercial development potential of Rødhette through existing regional infrastructure. The well was drilled 30 km north of the Goliat field and 5 km south from the Tornerose discovery.
The well, operated by Vår Energi, was drilled on time and on budget and will now be plugged and abandoned as planned.
Vår Energi AS holds a 50% stake of the license, with Longboat Energy (20%), Concedo (20%) & Equinor (10%) making up the rest of the JV.
Vår Energi is the largest independent operator on the Norwegian continental shelf with ownership in more than 136 licenses and oil and gas production from 35 fields. Vår Energi is owned by Eni (69,85%) and HitecVision (30,15%).
Mugnetind Well Spud
Longboat also announced the spud of the Mugnetind exploration well (Company 20%) with the Maersk Integrator jack-up rig.
The Mugnetind prospect, operated by AkerBP, is estimated to contain gross mean prospective resources of 24 mmboe with further potential upside estimated at 47 mmboe (gross). The chance of success associated with the Mugnetind prospect is 51% with the key risks being reservoir presence/quality.
The well is expected to take approximately five-to-seven weeks to drill with an estimated net cost to Longboat of c.$7 million (c.$1.5 million post tax).
“We are pleased to have made a hydrocarbon discovery with our first exploration well following our transformative acquisitions made this summer. We look forward to working together with the operator to use the data collected to assess the development potential for Rødhette alongside existing discoveries and further exploration potential in the area. We are in a very busy period of drilling with Egyptian Vulture and Mugnetind exploration wells now both underway with the potential to create significant shareholder value,” Helge Hammer, Chief Executive of Longboat, commented.
