Results from two wells drilled by Statoil (NYSE:STO) in association with the Dagny and Ermintrude discoveries in the North Sea will be important in choosing a development concept and further planning.
An exploration well on the Dougal prospect found only traces of hydrocarbons in the Hugin formation, and has been classified as dry. However, a subsequent appraisal well on Dagny Central encountered a 30-meter-thick gas column in the same formation.
“These wells aimed to test the production properties of Hugin reservoir rocks, and to prove more reserves for Dagny/Ermintrude,” said Svein Olav Høyland, who heads work on this development.
“Testing and data gathering have been in line with our plans, but it was disappointing that the well on Dougal in production license 303 failed to prove additional reserves.”
Both the present wells were drilled in 116 meters of water by the Ocean Vanguard rig, which is now moving to the northern North Sea to drill on the Krafla prospect operated by Statoil in PL 272. The exploration well was drilled four kilometers southeast of the original Dagny discovery, while the appraisal well which proved gas lay two kilometers to the southeast.
“Both these wells provide important geological and technical reservoir data for the Dagny/Ermintrude project, which is in the conceptual development phase,” explained Høyland.
“We’ll now be taking a little time to evaluate this information in order to assess how it affects the choice of concept and timetable.”
Preliminary estimates suggest that a Dagny/Ermintrude field development would embrace 125-250 million barrels of oil equivalent.
Gas was proven in Dagny as early as the 1970s just north of the Sleipner West field in the centre of Norway’s North Sea sector. This was followed in 2007 by the discovery of gas, condensate and oil in the Ermintrude prospect, while an appraisal well on Dagny in 2008 found an oil column under the gas.