Offshore Staff

STAVANGER -- StatoilHydro has confirmed the existence of gas and condensate on the Alve field in the Norwegian Sea around 16 km (10 mi) southeast of the Norne field. Based on a preliminary estimate, the discovery includes 3-5 bcm of gas. A thin oil zone was also proven below the gas.

Extension drilling was carried out in this production well, which is due to come onstream in January 2009.

The purpose of the exploration extension was to prove hydrocarbons in a reservoir located deeper in mid-Jurassic rocks than the resources proven in previous exploration wells on the Alve field. Gas and condensate in sandstone of mid-Jurassic rock were proven during the extension drilling.

The drilling of well 6507/3-5S has been completed, and the well will be temporarily plugged. A completion of the previously proven reservoir is planned for fall 2008.

The gas is to be transported to the Norne field. The licensees will evaluate how the additional resources proven in the extension drilling can be recovered. Formation testing was not performed in the well, but comprehensive data collection and sampling have been carried out.

The well was drilled to a vertical depth of 3,834 m (12,579 ft) below sea level, and was completed in lower Jurassic rocks. The water depth is 368 m (1,207 ft). TheOcean Vanguard drilling rig is leaving the location to drill an exploration well for StatoilHydro on the Irish continental shelf.

05/08/2008