2008 - best exploration year for a long time

2008, the best exploration year for a long time – that is the conclusion drawn by ExxonMobil’s Geoscience staff. As many as 25 discoveries were made on the Norwegian continental shelf  in 2008, and ExxonMobil has interest in around one third of them.

The good exploration results over the last couple of years will contribute substantially to ExxonMobil’s production in Norway being maintained at a significant level in the future.

Important discoveries in the North Sea

Most of the discoveries in 2008 were made near existing fields or infrastructure. In 1978, the Dagny field was assessed to contain gas and condensate only. This year, appraisal well 15/5-7 was drilled to investigate whether there might be oil on the flanks of the structure. The well encountered a substantial oil column in the Hugin formation, and the size of the oil and gas discovery has by the Norwegian Petroleum Directorate (NPD) preliminarily been estimated to be around 120 – 160 million barrels oil equivalent (o.e). Dagny, which is located 10 km north of Sleipner West in the North Sea, is straddling 4 licenses, and future work will determine what the interest of each license will be. The discovery could be developed via the Sleipner field, or as a separate field.

Another interesting discovery was made in well 25/11-25S (ExxonMobil’s interest is 13%) close to the Grane field. Oil was discovered in sandstones of Paleocene age, and the size has by the NPD been estimated to be between 20 – 30 million barrels of oil. The discovery is big enough to be developed. ExxonMobil also participated in some smaller discoveries in the Snorre, Fram, and Oseberg areas, which are being evaluated for possible development via existing fields.

Successful wells at Haltenbanken

In 2007, the Njord Northwest flank gas/condensates discovery was made close to the Njord field at Haltenbanken with an ExxonMobil interest of 20%. In the autumn of 2008, drilling of a new well 16 km north of the Njord field was completed on a prospect named Noatun. The result was a new gas discovery which by the NPD has been estimated to contain between 30 and 48 million barrels o.e. A field development via the Njord field is being evaluated.

Another area at Haltenbanken with exploration success in 2008, is block 6407/6 in PL 312 (ExxonMobil’s interest is 24%) near the producing Mikkel field. Well 6407/6-6 was drilled to explore for gas in sandstones of Middle Jurassic age on the Gamma prospect. The well encountered wet gas, and NPD’s preliminary estimates indicate that the discovery contains 2 to 3 billion Sm3 of recoverable gas. The prospect is located around 8 km southeast of the the Mikkel field. There are plans to link this gas discovery to infrastructure in the area.

Good possibilities for developing discoveries in the Nyk High area

Two other discoveries made last year off Mid Norway were located in the Nyk High area – Snefrid South (6706/12-1) and Haklang (6707/10-2). Both discoveries are located close to the gas discovery Luva made in 1997. (ExxonMobil’s interest is 15%). In Snefrid South, gas was encountered in sandstones of Cretaceous age. The gas column was 70 metres thick with good reservoir properties. The size of the discovery is by the NPD estimated to be around 4 billion Sm3 of recoverable gas.

Haklang encountered a 127 metres thick gas column in similar sandstones. The size of the discovery is estimated at between 8 and 14 billion Sm3 (NPD figures) of recoverable gas. A sidetrack was drilled to a deeper prospect which also discovered some gas. The license partners will now evaluate how Luva, Snefrid South and Haklang might be developed. One of the challenges is the water depth in the area being close to 1.300 metres – a development here would be a new record on the Norwegian shelf.

2009 - another exciting exploration year

The hope is that the good trend will continue into 2009, which will be another exciting exploration year for the company. Late January, drilling will start on an ExxonMobil  operated prospect called Freke located northeast of Dagny. When the operation with the rig Bredford Dolphin has been completed, the rig will move to drill on another ExxonMobil operated prospect, Eitri, located southeast of Jotun. In the fall, Bredford Dolphin will again drill an ExxonMobil operated prospect called Jetta south of Jotun. ExxonMobil will also participate in 4-6 exploration wells drilled by StatoilHydro close to our producing fields.