Neptune Energy confirms significant discovery at Dugong well

Neptune Energy and its partners announced the commercial discovery of oil at the Dugong well (PL882) in the Norwegian sector of the North Sea.

The volumes are estimated to be in the range of 6.3 – 19 million standard cu m of recoverable oil equivalent, or 40 – 120 million BOE.

In addition, the Dugong discovery has significantly de-risked another prospect in the license estimated by Neptune at 5.2 million standard cu m of recoverable oil equivalent, or 33 million BOE. This brings Neptune’s estimate of the total resource potential in PL882 to as much as 153 million BOE.

Neptune Energy is the operator of the Dugong license with a 40% ownership interest.

“This is a significant discovery and strategically important for Neptune Energy in this region,” Odin Estensen, Neptune Energy’s Managing Director in Norway, said. “It underlines our commitment to continue investing in activities in the Norwegian sector, which is an integral part of our geographically-diverse portfolio. Dugong may also open up additional opportunities in the surrounding licenses with the potential for a new core area for Neptune in Norway.”

Dugong (PL 882) is located 158 km west of Florø, Norway, at a water depth of 330 m and is close to existing production facilities. The Dugong prospect consists of two reservoirs that lies at a depth between 3,250 – 3,500 m.

“The discovery gives new and valuable understanding of the subsurface in this part of the Tampen area,” Steinar Meland, Neptune Energy’s Director of Exploration & Development in Norway, said. “We are very pleased to see that our exploration model developed together with our partners has proved to be successful. We will now initiate studies, as well as consider development options for the discovery.”

The discovery well 34/4-15 S and the down-dip sidetrack 34/4-15 A proved oil in the Viking and Brent Groups of the Dugong prospect. These are the first exploration wells in production license 882. The license was awarded in 2017 as result of the Norwegian licensing round Awards in Predefined Areas (APA).

Dugong was drilled by the Deepsea Yantai semisubmersible rig, which is owned by CIMC and operated by Odfjell Drilling. The well will be plugged and abandoned.