Amoco Strikes Major Oil and Gas Field in the Norwegian Sea

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30 April 1998

Amoco Norway Oil Company, a subsidiary of Amoco Corporation, has made a significant oil and gas discovery in the 15th round production license PL212, situated about 200 km off the coast of Helgeland in North Norway. Although uncertainty remains about the size of the discovery, and particularly about the oil/gas ratio, preliminary estimates suggest that recoverable resources in sediments of the Jurassic age could be in the range 200 to 500 million barrels of oil equivalents (BOE).

"This is a very important discovery to Amoco in Norway as well as to Amoco Corporation," commented L Richard Flury, executive vice president responsible for Amoco's exploration and production sector. "In recent years we have put great efforts into growing our business worldwide. Amoco Norway has contributed to this growth by tripling the reserves in the North Sea Valhall Field which it operates. With this new exploration success in the Norwegian Sea, our Norwegian operations will significantly enhance their contribution to Amoco's growth far into the next century," said Flury.

Amoco Norway President Anders Morland, said this is a long awaited reward for the organization in Norway. "We were very encouraged by receiving a 30 percent share and the operatorship of this license, which was our top priority in the 15th license round. We will work diligently with our partners and the Government to delineate this discovery and evaluate additional opportunities in the license, in our best effort to add value to the companies involved as well as to the society," said Morland.

This first well in the 15th round license was drilled on a structure located between the oil producing fields of Norne and Heidrun, in an area where several fields are producing or are under development and where plans exist for new pipelines to bring new volumes of natural gas to market. Well 6507/5-1 was drilled in a water depth of 327 meters (1070 feet), to a vertical depth of 4,198 meters (13,800 feet) below sea level, and terminated in rock of the early Jurassic age.
The well encountered more than 140 meters (460 feet) of net oil and natural gas pay, associated with sediments of Jurassic and Cretaceous ages. Three separate drill stem tests were run. Two tests were conducted in the Jurassic and produced at rates of 862 Sm3 (5,400 bbls) of oil with 151,000 Sm3 (5.3 million cubic feet) of natural gas per day through a 38 mm (1.5 inch) choke, and 742,000 Sm3 (26.2 million cubic feet) of natural gas with 178 Sm3 (1,120 bbls) of condensate per day through a 19 mm (0.75 inch) choke. The Cretaceous produced oil at a rate of 923 Sm3 (5,800 bbls) of oil with 221,000 Sm3 (7.8 million cubic feet) of natural gas per day, through a 17 mm (0.67 inch) choke.

Approximately 300 meters (984 feet) of core were collected in the well, and the drilling and testing operations were conducted safely and efficiently. Although uncertainty remains, particularly to the oil/gas ratio, preliminary estimates suggest recoverable resources in the Jurassic could range from 30 to 80 million Sm3 of oil equivalents (200 to 500 million BOE). Amoco Norway, the operator, is currently working with the well results to confirm the size of the discovery which will require further drilling to delineate. In addition there are other prospects in the license under evaluation.

Amoco plans to participate in an additional three to five operated and non-operated wells this year on the Norwegian Continental Shelf, pending rig availability. The company has signed a letter of intent with the Smedvig drilling company for a long-term contract on the West Alpha semi submersible drilling rig to cover drilling needs in the coming years. The licensees in PL 212 are: Amoco Norway Oil Company (operator) 30% Statoil (State direct financial interest, SDFI) 30% Enterprise Oil Norge Ltd. 25% Mobil Exploration Norway, Inc. 15% Amoco Corporation is a global producer of oil, natural gas, refined products and chemicals with annual revenues of more than $36 billion in 1997.

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