Vår Energi ASA has confirmed the discovery of oil in the Balder area in the Central North Sea.
The company’s latest Ringhorne North exploration well in production license PL 956, which it operates, was successful with estimated recoverable resources of between 13 million and 23 million barrels of oil, Var Energi said in a news release Wednesday.
The Ringhorne North exploration well and two additional side-track/appraisal wells were drilled by the semi-submersible rig Deepsea Yantai in the Central North Sea, five miles (eight kilometers) north of the Vår Energi-operated Ringhorne field, about 124 miles (200 kilometers) northwest of Stavanger, according to the release.
Var Energi stated that it considers the discovery a potential commercial candidate to be tied into nearby existing infrastructure in the Balder area.
“The discovery proves that there are still opportunities in the mature areas on the Norwegian Continental Shelf, and I’m glad to see that our near-field exploration strategy is paying off,” Vår Energi COO Torger Rød said. “We believe there is more value to be unlocked in the Balder area, and we are intensifying exploration activities to maximize value creation from the existing infrastructure”.
“Our exploration portfolio is the basis to unlock and create future value. We are among the largest license holders on the NCS with roughly 200 licenses,” Vår Energi EVP for Exploration and Production Rune Oldervoll said. “Our commitment to explore for further resources remains firm. We have a highly experienced team, and we are also leveraging the expertise of Eni, our major shareholder, one of the most successful explorers globally”.
In addition to unlocking new resources and proving the northern extension of the Ringhorne field, the Ringhorne North discovery also de-risks more drillable prospects in the area and opens up potential development synergies with other nearby Vår Energi operated discoveries such as King-Prince and Evra-Iving, Var Energi said.
Further, the company remarked that the discovery supports the plans for continuous development of the Balder area as a long-term production hub in the North Sea.
“The reserves and resource base in the Balder area has been steadily growing for decades and we are convinced it will continue to do so in decades to come. We are positioned to produce high value, low emission barrels for a long time – and the latest Ringhorne North discovery is underpinning our long-term production targets,” Oldervoll added.
The license partners for PL 956 are Vår Energi with a 50 percent interest, Aker BP ASA with a 20 percent interest, Harbour Energy Norge AS with 15 percent, and Sval Energi AS with 15 percent.
Vår Energi said its discovery rate is above 50 percent over the past five years, with costs of less than $1 per barrel post tax.
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