UK utility Centrica has found more gas than it had previously estimated at its Fogelberg prospect in Production Licence 433 in the Norwegian Sea, one of its partners in the licence said Thursday.
Norwegian oil and gas explorer North Energy said that deeper studies at the prospect showed that the license contains more gas than originally anticipated, and that further development of PL 433 Fogelberg would be profitable.
"We are satisfied that the operator's resource estimate of Fogelberg increases from 47 million to 68 million barrels of oil equivalent," said North Energy in a statement to the Oslo Bors.
"This confirms our earlier assumption that North Energy's first exploration well represents a resource base to justify a profitable development," North Energy added.
PL 433 is located in the Norwegian Sea, about 10 km north of the producing Asgard field.
Partners of the license are Centrica (which is operator with a 28% share, North Energy (12%), Petro-Canada (30%), Faroe Petroleum 15%) and German group E.ON Ruhrgas (15%).
North Energy said that with the latest estimates, no further work needed to be done in proving up the resource which already justified economic development.
"There is no need to invest in several wells before a final development decision is taken," North Energy CEO Erik Karlstrom said.
"We also support the operator's work towards a solution to find market access to the gas as soon as possible. We have full confidence that all options are considered," he added.
After the discovery of gas condensate in well 6506/9-2S in 2010, the operator Centrica carried out detailed studies of the reservoir and development opportunities.
North Energy said that during the same period it made its own reservoir study that fully supported the operator's work.
With the extra data and certainty, the partners have now decided not to drill an appraisal well, North Energy added, reversing their earlier expectations that more work would be needed.
Fogelberg is located 18 km northwest of the producing Asgard complex, where large quantities of gas and condensate are being processed and transported to several landing points on the European continent.
