Var Energi reports "significant" find off Norway
Var Energi has discovered between 60mn and 135mn barrels of oil equivalent in oil and gas after drilling two wells in the Balder area of the south North Sea off Norway, the company reported on June 21.
The "significant" discovery was made at the King and Prince wildcat wells, which Var Energi drilled at production licence 027. Prince, sunk to a depth of 2,374 m under the seabed, encountered a 35-m oil column in the Triassic Skagerrak formation with good to moderate reservoir quality. The 2,353-m King well tapped into a 30-m gas column and a 55-m light oil column.
An additional appraisal sidetrack at King also confirmed a 40-m gas column and a 55-m oil column, of which around 35 m comprised a massive oil-bearing injectite sandstone with excellent reservoir quality.
Var Energi said the finds "prove that there are still opportunities in the mature areas on the Norwegian continental shelf." The discoveries are considered commercial and work is already underway to fast-track development.
"The discoveries fit in well with our area plans and continuous development of the Balder area as an important production hub for Var Energi," the company's vice president for field development and projects," Bjorn Thore Ribesen, commented. "We are in the process of revitalising the area and these discoveries will increase future value creation."
Var Energi has a 90% interest in the licence 027, while Mime Petroleum has 10%. The company is redeveloping the Balder and Ringhorne fields under the $1.7bn Balder X project, aimed at recovering an extra 170mn barrels of crude.