Spike declares Pil, Bue oil discoveries to be commercial

Following two side tracks from the original exploration well that discovered Pil in PL586 outside mid-Norway in April, the combined current resource interval for the Pil and Bue discoveries is now estimated to 80 –200 MMboe, 80% of which is predicted to be oil and condensate. With such volumes and the reservoir characteristics seen, Spike Exploration is of the opinion that Pil and Bue are commercially viable.

Jul 11th, 2014

Offshore staff

STAVANGER, NorwayFollowing two side tracks from the original exploration well that discovered Pil in PL586 outside mid-Norway in April, the combined current resource interval for the Pil and Bue discoveries is now estimated to 80 –200 MMboe, 80% of which is predicted to be oil and condensate. With such volumes and the reservoir characteristics seen, Spike Exploration is of the opinion that Pil and Bue are commercially viable.

The first side track into the Pil discovery reaching 1.7 km (1 mi) to the northeast of the original Pil discovery well, encountered an 82-m (269-ft) gross oil column in reservoir rocks of good quality. The oil/water contact was encountered deeper than expected. The resource estimate for Pil is 70-170 MMboe.

The second side track into Bue reached 2.1 km (1.3 mi) to the northeast and proved an 18-m (59-ft) gross hydrocarbon column of variable quality. With a different pressure regime in Bue compared to Pil, the Bue discovery is a proven separate accumulation. The resource estimate for Bue is 6-25 MMboe and condensate.

PL586 is operated by VNG Norge AS (30%) with partners Spike Exploration Holding AS (30%), Faroe Petroleum Norge AS (25%), and Rocksource Exploration Norway AS (15%).

07/11/2014

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