OSLO,
Norway, Dec. 2, 2022 /PRNewswire/ -- Norwegian
Energy Company ASA ("Noreco" or the "Company") is pleased to
announce a Final Investment Decision ("FID") on two infill wells,
where the first well is expected to be drilled by the jackup rig
Shelf Drilling Winner in the early spring of 2023.
The two wells will be drilled at the Tor reservoir in the
Halfdan North East area, located in the central part of the Danish
North Sea. Both the wells are expected to increase gas production
from the Halfdan field, with plateau production expected during
autumn 2023. The first well alone is expected to have an initial
production rate of 3 mboe/day net to Noreco where approximately 75%
is gas. The expected gain from the infill wells is approximately
2.9mmboe net to Noreco, of which c. 50% is gas.
The total cost net to Noreco is USD 39
million, implying a total unit development cost of
approximately USD 13 per barrel of
oil equivalent. Based on expected reserves and forward curves of
Brent and TTF from November 2022, the
forecast IRR is above 200% with a payback period of c. six months,
making the infill wells highly attractive from an economic and
strategic perspective.
"I am delighted to announce this significant milestone for
the Danish Underground Consortium (the "DUC") where we have not had
drilling activity since 2019. It has never been a better time to
invest in further drilling and field development activities to
ensure that the recovery from the DUC fields is maximised. Several
highly economic opportunities are currently being matured and this
is the first of many investment decisions to be made, in line with
Noreco's objective to maximise gas output in the short-, medium-
and long-term," said Marianne
Eide, Chief Operating Officer in Noreco.
This information is subject to disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act.
Contact:
Cathrine F. Torgersen, EVP Investor
Relations & ESG
Phone: +47 915 28 501
Email: ct@noreco.com
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