Dagny structure confirms oil column

The Dagny structure in the North Sea has confirmed the presence of a considerable oil column and gas has been proven in the deepwater Snefrid South prospect near the Luva discovery in the Norwegian Sea, according to StatoilHydro.

Offshore staff

OSLO -- The Dagny structure in the North Sea has confirmed the presence of a considerable oil column and gas has been proven in the deepwater Snefrid South prospect near the Luva discovery in the Norwegian Sea, according to StatoilHydro.

The purpose of well 15/5-7 in production license 048 was to confirm the presence of oil in Mid-Jurassic reservoir rocks below the Dagny gas discovery. The well confirmed an oil column of 100 m (328 ft) in the Hugin formation.

The total recoverable volume is estimated at 100-125 MMboe.

The Dagny discovery is located northwest of Sleipner West. Development of the discovery in association with the Sleipner field will be considered by the company.

TheTransocean Winner drilled the well in 119 m (390 ft) of water. The well was completed in the Upper Triassic Skagerrak formation, 4,037 m (13,245 ft) below sea level. A sidetrack is now being considered in order to establish the oil-water contact, the company says.

Exploration well 6706/12-1 in production license PL218 in the Norwegian Sea was also successful, StatoilHydro says. The well is located west of the Luva gas discovery.

The purpose of the well was to confirm the existence of petroleum in Late Cretaceous reservoir rocks in the Snefrid South prospect.

The well confirmed the existence of a 70-m (230-ft) gas column with good reservoir qualities in the Nise formation. Core drilling was performed, and fluid and pressure samples were collected.

The discovery is estimated to contain some 4 bcm (141 bcf) of recoverable gas.

Snefrid will be developed in combination with the Luva discovery, according to StatoilHydro.

TheTransocean Leader drilled the well to a vertical depth of 3,925 m (12,877 ft) below sea level. The well was completed in the lower parts of the Nise formation in 1,265 m (4,150 ft) of water. It will now be permanently plugged and abandoned.

The rig will next drill exploration well 6707/10-2 S in the same production license.

08/25/2008

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