Oil Discovery in The North Sea

Press Release May 10, 2011

Oil has been proven by Statoil and its partners Det norske oljeselskap ASA and Svenska Petroleum Exploration AS on the North Sea Krafla prospect. The well is located in block 30/11 around 26 kilometres south of the Oseberg South field.

Based on preliminary calculations the size of the discovery is between 12.5 and 56.5 million barrels of recoverable oil equivalent.

”Statoil has had great exploration success in mature areas during the last years,” says Gro Gunleiksrud Haatvedt, Statoil’s head of exploration on the Norwegian continental shelf (NCS).

“The North Sea is a strategically important area to Statoil, and this discovery on Krafla confirms once again that the company can still find interesting volumes close to established infrastructure.”

”These discoveries can quickly be put on stream and help extend the life of our installations,” she says.

Drilled by the Ocean Vanguard rig the well proved a column of around 200 metres in good quality reservoir rocks.

”Previously six exploration wells have been drilled in block 30/11 without commercial success, so we are very pleased that Statoil seems to have made a fast track discovery in our first operated well in this license,” says Tom Dreyer, exploration manager for the Northern North Sea.

“Although data collection is still ongoing, the results so far clearly indicate that this is an oil discovery. If this is the case then we have unlocked the exploration potential of this area and have several follow-up opportunities.”

When the Krafla well is completed, the Ocean Vanguard will start drilling the planned sidetrack well on Krafla West, which is located west of the recently drilled well.

The find will probably be developed and produced by tie-back to one of the subsea installations in the Oseberg area.

The licensees in PL035/PL272 are: Statoil (operator) (50%), Det norske oljeselskap ASA (25%) and Svenska Petroleum Exploration AS (25%).

Facts

    * Exploration well 30/11-8 S is well no. 6 in production licence 035 which was awarded on 14 November 1969.
    * The well was drilled to a vertical depth of 3,822 metres below sea level.
    * Hydrocarbons were proven in the Brent group which was the primary target for the well.
    * The well was completed in the Dunlin group in Lower Jurassic rocks, where no hydrocarbons were proven.
    * No formation test will be carried out in the well.
    * Water depth is 107.5 metres.
    * The well will be permanently plugged and abandoned.
    * Sidetrack drilling on Krafla West well 30/11-8 A is a prospect in Middle Jurassic rocks (Brent group).
    * Krafla is located 16 kilometres from the Katla prospect which was proven in 2009. Statoil has recently submitted a plan for development and production (PDO) for this prospect.