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NORECO Stavanger, 16 June, 2008: Norwegian Energy Company ASA (Noreco, OSE:NOR), Gas was discovered in the second exploration well on the Galtvort prospect in Norway, where Noreco holds a 17.5% share. - We are very pleased with the success on Galtvort, and are exited about the pursuit of further opportunities in the area, says CEO of Noreco, Scott Kerr.
Following the gas discovery on in the southern segment of the Galtvort prospect announced 21 May, a well to the northern segment has also discovered gas. The partners are now evaluating the size of the discovery, before development planning starts.
There are now three discovery wells on the license (Galtvort (2) and Tau), and another exploration well at the Gygrid prospect is planned drilled in Q1 2009. See attached map.
Facts about well 6407/8-4 A StatoilHydro Petroleum AS, operator of production licence 348, is currently concluding the drilling of wildcat well 6407/8-4 A. The well is located 30 kilometres north-east of the Njord field and 9 kilometres north-west of the Draugen field in the Norwegian Sea.
The purpose of the well was to prove petroleum in Middle to Lower Jurassic reservoir rocks in the northern segment in a prospect called Galtvort. The well was a planned sidetrack and it proved gas in the Middle to Lower Jurassic reservoir rocks. In May 2008, discovery well 6407/8-4 S proved gas at the same level in the southern segment of the Galtvort prospect. The total size of the discovery is estimated at 1-3 billion Sm3 recoverable gas. The licensees will now evaluate the size of the discovery for further clarification prior to considering potential development solutions. The well was not formation-tested, but extensive data collection and sampling has been done on the reservoir.
These two wells are the first in production licence 348, which was awarded in APA 2004 (Awards in Pre-Defined Areas). The next exploration well in the licence is planned for 2009.
Well 6407/8-4 A was drilled to a vertical depth of 2300 metres below the sea surface, and was concluded in the Åre formation in the Lower Jurassic. Water depth at the site is 266 metres. The well will now be permanently plugged and abandoned. The well was drilled using the West Alpha drilling rig.
Noreco acquired a 17.5% interest in license PL348 in 2006. The other license partners are StatoilHydro (30% interest), Gaz de France Norge AS (20%), E.ON Ruhrgas Norge AS (17.5%), Endeavour Energy Norge AS (7.5%) og Petoro (7.5%).
For further information, please contact: Scott Kerr, CEO (+47 992 83 890) Einar Gjelsvik, Vice President Investor Relations (+47 992 83 856) www.noreco.com
