DNO updates Equatorial Guinea status, plans

DNO and partners, including operator Devon Energy, have published the exploration drilling status in block P offshore Equatorial Guinea along with plans for the license.

Offshore staff

OSLO, Norway -- DNO and partners, including operator Devon Energy, have published the exploration drilling status in block P offshore Equatorial Guinea along with plans for the license.

The P-1 well, drilled in September/October 2004, reached a TD of 2,386 m (7,829 ft). TVD and tested five geological targets in the Upper Cretaceous formation. The well demonstrated that the major elements of the hydrocarbon system, source, migration and reservoir are present in the prospect area known as Jupiter, but did not find commercial hydrocarbons.

Wells P-2, P-2 sidetrack, and P-3 encountered to commercial hydrocarbons, but well P-4, drilled back-to-back to P-3, encountered oil and gas in several thin reservoir layers. The well was plugged and abandoned. Information from the well is being analyzed together with other regional information to investigate the significance of the hydrocarbons found in the well.

Based on the current estimates, the Green Sand discovery holds 33 MMbbl of gross recoverable oil reserves. Devon, the operator, will undertake a feasibility study to evaluate the commercial viability of the project. Studies also are ongoing to evaluate information acquired from the block to support decisions on further exploration and appraisal activities within the area.

Seismic interpretation points to several prospects that represent a potential for additional reserves in the vicinity of the Green Sand oil discovery.

"Through our participation in block P, Equatorial Guinea to date, DNO has gained valuable experience and expertise within a new and prospective area, at a relatively low financial exposure. We are encouraged with the recent update on the forward plans for the license, and if a field development plan is agreed this could add further operating knowledge to DNO of this region," says Helge Eide, managing director of DNO ASA.

The block P production-sharing contract, signed in April 2003, covers 1,333 sq km (515 sq mi). The license is operated by Devon Energy which has a 38.4 % interest in the block. The other partners are Petronas with 31%, Atlas Petroleum with 5.6%, DNO with 5%, and GEPetrol with 20% (carried during the exploration phase).

3/28/2007

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