Norwegian oil and gas company Aker BP has made a minor oil discovery at the Mugnetind exploration well in the North Sea, offshore Norway.
According to Longboat Energy, Aker BP's partner in the offshore license PL906 where the well is located, the exploration well 7/11-14 S encountered hydrocarbons in the Upper Jurassic Ula Formation but the volumes found are not enough for a standalone development.
"The Ula formation was reached at a vertical depth of 3,985 meters below sea level and consisted of a 28-meter gross section with 14 meters of net sandstone of moderate to good quality. The reservoir section in Mugnetind is thinner than predicted as we encountered a thick coal layer immediately under the reservoir. Mugnetind was drilled on a seismic anomaly, which predrill had been identified as either hydrocarbon-filled reservoir or coal," Longboat said.
Prior to the drilling operation taking place, the partners in the project had expected to hit gross mean prospective resources of 24 mmboe with further potential upside estimated at 47 mmboe on a gross basis at the Mugnetind. However, this estimate has now been reduced significantly.
"Based on the operator’s preliminary estimates the Mugnetind discovery contains recoverable resources between 5 and 11 MMboe, which is not considered to be commercial in isolation," Longboat, formed by ex-Faroe Petroleum management, said.
Aker BP used Maersk Drilling's Maersk Integrator jack-up drilling rig to drill the Mugnetind well.
Helge Hammer, Chief Executive of Longboat, said: “While we are disappointed that Mugnetind has come in below pre-drill expectations, we will continue to review opportunities in the area and the potential for finding a commercial development solution. Nevertheless, having discovered hydrocarbons in all of our first three wells is a fantastic achievement by our technical team.”
“Following our material discovery at Egyptian Vulture earlier this week, the company is looking forward to the continuing fully funded well program with Ginny/Hermine expected later in 2021 and the Kveikje and Cambozola wells spudding in the spring of 2022.”