Noreco, North Energy renegotiate Norway license deal

Norwegian Energy Co. (Noreco) has agreed to transfer its 30% stake in Norwegian Sea license PL484 to North Energy, subject to government approval.

Jan 19th, 2015

Offshore staff

STAVANGER, Norway – Norwegian Energy Co. (Noreco) has agreed to transfer its 30% stake in Norwegian Sea license PL484 to North Energy, subject to government approval.

Under the agreement, Noreco may re-enter the license at some point with a reduced equity share.

They originally announced anasset swap deal last summer that also included PL616 in the North Sea. This part of the agreement has been canceled, so Noreco will maintain a 20% in this license, where an exploration well will be drilled later this year on the Haribo prospect.

North Energy says PL 484 contains several promising prospects and the partners are evaluating potential for further exploration drilling.

Elsewhere in the Norwegian Sea, the company expects operator Tullow Oil to spud an exploration well this spring on the Zumba prospect in PL 591 (North Energy 15%). The target is Upper Jurassic (Rogn equivalent) sandstones in the northern part of the Grinda Graben, in an area with numerous oil and gas/condensate discoveries.

In the Barents Sea, North Energy will participate in a Lundin-operated well on the Ørnen prospect in PL 708 on the Finnmark Platform, which is due to spud this fall.

Here the target is Upper Permian spiculites previously tested by well 7128/4-1 on the Finnmark Platform and similar to the rocks tested byLundin’s Gohta discovery. A secondary target is Carboniferous/Permian reservoirs represented by carbonates corresponding to the rocks which yielded a discovery in the Alta structure last year on the Loppa High.

In the southern Norwegian North Sea, North Energy has a 15% interest in the Edison-operated PL 616. The partners plan to spud a well this summer targeting Upper Cretaceous chalk similar to the reservoir in the nearbyBP-operated Hod field.

01/19/2015

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