FOLLOW up drilling has proved worthwhile for VNG Norge, with news of another oil discovery uncovered in the Bue exploration well off Norway.
It marks the third successful well on the PL 586 licence following the Pil discovery and appraisal wells earlier this year.
PL 586 is located on the Halten Terrace in the Norwegian Sea, about 33 kilometres south-west of the Njord field and its associated production facilities.
The Bue exploration well was drilled 2.1 km northeast from the Pil discovery well, encountering an 18m hydrocarbon column.
One of the partners in the discovery, Norway’s Rocksource, estimates that Pil and Bue combined have reserves of 95 million to 175 million barrels of oil equivalent. Bue is a smaller field than Pil, while pressure data indicates that it is a separate accumulation.
“The un-risked prospectivity remaining in the rest of the licence is estimated by Rocksource to be significantly in excess of the mean discovered volumes at Pil,” the company said.
Two additional wells are scheduled to be drilled in 2015, and the PL 586 partnership has now secured rig capacity for this purpose.
Aside from operator VNG Norge, the other players in the partnership Spike Exploration and Faroe Petroleum.
With Bue reserves currently estimated in a range of 6 to 25 million mmboe by the operator VNG, there’s an expectation Bue may be a potential satellite to a future Pil development.
The Pil discovery was proven in an Upper Jurassic reservoir in spring 2014. The appraisal well encountered an 82m oil column in Upper Jurassic reservoir rocks of excellent quality while the oil water contact was encountered deeper than expected.
As a result, VNG Norge has now adjusted its resource estimate for the Pil oil and gas discovery to 72-171 mmboe. Rocksource’s estimate for Pil remains 90 to 150 mmboe, with a mean of 115 mmboe.
Rocksource chief executive Chris Spencer said the success of Bue reconfirmed its view that a significant commercial accumulation had been discovered which has the potential to be a company maker.
“Bue provides valuable add-on volumes to Pil, but the exploration prospects to be tested in 2015 are even more exciting,” he said.
“Rocksource looks forward to the 2015 drilling campaign which will test the substantial upside potential that remains in the licence.”
Rocksource, through Rocksource Exploration Norway, holds a 15 percent interest in PL 586.