Norwegian oil company Equinor has made a significant discovery at the Kveikje exploration well in the North Sea, offshore Norway, Longboat Energy, Equinor's partner in the project, has informed.
The well, formally named Well 35/10-8S, located in license PL293B, was spudded March 8, using Odfjell Drilling's Deepsea Stavanger offshore drilling rig.
According to Longboat, which owns a 10% stake in the license, the preliminary estimate of recoverable resources in Kveikje Main, being the primary target of the exploration well, is 28 to 48 MMboe (gross), above the pre-drill expectation.
The preliminary on-site analysis of the oil indicates a medium-density oil (30-40 deg API). Gas discovered in the overlying Kveikje Hordaland reservoir is interpreted to be in communication with the main reservoir and represents upside potential to the Kveikje development since the gas cap could contribute to a higher recovery factor through pressure support during the production phase and subsequently be a target for production.
"The discovery has excellent reservoir quality and is close to existing infrastructure allowing for a simple development through multiple export options," Longboat Energy, established in late 2019 by ex-Faroe Petroleum management team, said.
Helge Hammer, Chief Executive of Longboat, said "Longboat is very pleased to have made a significant commercial discovery in the Kveikje well.
"Excellent reservoir quality, close proximity to infrastructure and multiple development options make this an important and valuable resource and we look forward to working with the operator to mature the forward plan. We believe that this is an asset that can be commercialized via either development or transaction given the high-value barrels that we have discovered.
"Kveikje is the fifth well and third discovery in our seven-well drilling campaign. The rig will now move to the nearby Cambozola well where we have a 25% working interest. Cambozola is a play opener and one of the largest gas prospects to be drilled in Norway in 2022 and mid-year we expect to spud Copernicus, another a very large gas prospect."
The Kveikje discovery is 40 km from the Troll B field and 32 km from Troll C, which are potential host facilities. The water depth at the site is around 362 meters.
"The Kveikje discovery will be evaluated as part of a potential Equinor operated area development, which could comprise numerous recent discoveries in the area, including Toppand, Swisher, Røver Nord, Echino South and Blasto, as well as the undeveloped Grosbeak field," Longboat added.