Author: Oksana Hillervik

The wildcat well 6507/5-10 S is located about 23 kilometers north of the Heidrun field in the Haltenbank area, in the central part of the Norwegian Sea.

Preliminary estimates place the size of the discovery between 12 and 32 million standard cubic meters (Sm³) of recoverable oil equivalent, or about 75 to 200 million barrels oil equivalent.

The well encountered a total oil column of 270 metre in the Åre Formation and Grey Beds. Sandstone layers of 90 meters were encountered within the oil column with generally very good reservoir properties.

Pandion Energy, together with operator ConocoPhillips Scandinavia AS, will assess the results of the discovery together with other nearby prospects to determine the future appraisal and potential development solutions.

VP of Exploration and Appraisal at Pandion Energy, Bente Flakstad Vold, comments:

“We are proud to take part in the largest discovery in Norway this year. This illustrates the value creation potential in the team’s ability to make quick decisions based on a multidisciplinary work methodology. In light of the knowledge gathered from the discovery well, we see an exciting resource upside in both the discovery itself and other parts of the license. We now look forward to continuing our good cooperation with ConocoPhillips and contribute to realizing the full value potential in PL 891.”

Pandion Energy acquired its 20 per cent interest in the production license in July 2019 from operator ConocoPhillips, which holds the remaining 80 per cent.

CEO of Pandion Energy, Jan Christian Ellefsen, adds:

“The Slagugle discovery is a prime example of our exploration strategy targeting opportunities close to existing infrastructure with focus on prospects with material upsides. This is truly a great Christmas present and demonstrates the significant remaining resource potential on the NCS.”

The Slagugle well is the third discovery that Pandion Energy announces in 2020. In March, the company made an oil and gas discovery near the Balder field, in production license 820 S. The licensees are currently planning an appraisal campaign of this Iving discovery in 2021. In November, a minor gas discovery was announced in production license 263 D/E in the Norwegian Sea.

For further information see press release from the Norwegian Petroleum Directorate: Oil discovery north of the Heidrun field in the Norwegian Sea – 6507/5-10 S

• Pandion Energy submits Plan for development and operation of Hod
• Pandion Energy approves the Hod development project

The Duva oil and gas field is located in the northern North Sea and was discovered in the autumn of 2016. The Plan for Development and Operation (PDO) was approved in June 2019 with first production expected in late 2020 / early 2021.

Pandion Energy has with this completed the sale of it’s 20% non-operated interests in the Duva oil and gas field and associated licenses.

Related post: 07. November 2019 – Pandion Energy divests its 20 percent share in the Duva field.

Pandion Energy AS and Solveig Gas Norway AS have completed their previously announced transaction, whereby Pandion Energy has sold 10% non-operated interests in PL 636, comprising the Duva oil and gas field, and PL 636B.

The Duva oil and gas field is located in the northern North Sea and was discovered in the autumn of 2016. The Plan for Development and Operation (PDO) was approved in June 2019 with first production expected in late 2020 / early 2021.

Pandion Energy has also sold 10% non-operated interests in the same licenses to PGNiG Upstream Norway AS. This transaction is expected to be completed early 2020.

Related post: 07. November 2019 – Pandion Energy divests its 20 percent share in the Duva field.

The Plan for Development and Operation of Valhall Flank West was submitted in December 2017. First steel was cut at Kvaerner’s yard in Verdal in April 2018. Just over one year later, both the jacket and the topsides were installed on the field with no additional carry-over work.

Valhall Flank West is a well head platform, that will normally be unmanned, tied back to the Valhall field centre for processing and export. The installation receives power from shore via the Valhall field centre, in line with the partnership’s strategy of minimising the environmental footprint.

Since FID, several additional wells have been sanctioned bringing the recoverable reserves from 60 to close to 80 million barrels of oil equivalent, with further drilling targets being evaluated.

Recoverable reserves for Valhall Flank West were estimated to be around 60 million barrels of oil equivalent based on the drilling of six production wells. Since then, several additional wells have been sanctioned bringing the recoverable reserves close to 80 million barrels of oil equivalent, with further drilling targets being evaluated.

The partnership has invested NOK 5.5 billion in Valhall Flank West development project, which has an estimated break-even price of USD 28.5 per barrel. Around 1,500 people have been involved in the project.

Jan Christian Ellefsen, CEO of Pandion Energy commented:

“This is truly a day to remember. Valhall Flank West is the first development project we have participated in as a partner on Valhall & Hod. We are very impressed with the execution of the project  and the way the involved parties have worked as one team, delivering one of the safest projects on the NCS, on schedule and within budget.”

For more information see press release by Aker BP.

Pandion Energy has agreed to divest its 20% share in the Duva field through two transactions, one with PGNiG Upstream Norway AS and one with Solveig Gas Norway AS, each acquiring a 10% share in PL 636 and PL 636B.

The Duva oil and gas field is located in the northern North Sea and was discovered in the autumn of 2016. The Plan for Development and Operation (PDO) was approved earlier this year, less than three years after discovery. With recoverable reserves of 88 million barrels of oil equivalent, the field is expected to produce around 30 thousand barrels of oil equivalent per day at its peak. The Duva field will be developed as a subsea tie-back to the nearby Gjøa platform, with first production expected in late 2020 / early 2021.

Our engagement in Duva represents the core of our strategy – to add value to high quality assets and mature them up the development curve – in this case with more than a 50% increase in recoverable resources since the initial discovery. With this sale, we will crystallise some of the value created in our portfolio to date, further strengthening Pandion Energy’s capacity to act on future opportunities.

Jan Christian Ellefsen, CEO of Pandion Energy, comments:

“Duva was the first discovery in our portfolio after forming Pandion Energy almost three years ago. We are pleased with the significant value created to date, having participated since the field was discovered through to development. Our engagement in Duva represents the core of our strategy – to add value to high quality assets and mature them up the development curve – in this case with more than a 50% increase in recoverable resources since the initial discovery. With this sale, we will crystallise some of the value created in our portfolio to date, further strengthening Pandion Energy’s capacity to act on future opportunities. We remain deeply committed to the Norwegian Continental Shelf and look forward to continuing to create value in our remaining portfolio and investing in new attractive opportunities on the shelf.”

The transactions are subject to customary conditions for completion, including approval by the Norwegian Ministry of Petroleum and Energy.

Capricorn Norge AS, operator of PL 842, has completed the drilling of wildcat well 6608/11-9. The well is reported dry. The well that was drilled about 13 kilometres northeast of the Norne field was testing a new play.

The primary exploration target for the well was to prove petroleum in Upper Jurassic reservoir rocks (the Rogn formation). The secondary exploration target for the well was to examine reservoir development in Upper Jurassic reservoir rocks (intra Melke formation sandstones).

The Rogn formation was not present in the primary target. In the secondary target, 118 metres with alternating layers of clay stone, siltstone and sandstone was encountered in the Melke formation, where about 40 metres was sandstone with moderate reservoir quality.

The well was drilled to a vertical depth of 1676 metres below the sea surface, and was terminated in the Not formation in the Middle Jurassic.

For more information see full press release from the Operator at the NPD webpage.

Pandion Energy AS (Pandion Energy) has entered into an agreement with ConocoPhillips Skandinavia AS (ConocoPhillips) to acquire a 20 percent interest in PL 891, containing the Slagugle prospect. The license is located in the prolific Haltenbanken area of the Norwegian Sea in blocks 6507/5, 6 and 8. Contingent on approval by the Norwegian Ministry of Petroleum and Energy, the operator will be making preparations to drill the Slagugle prospect in 2020, alternatively 2021.

CEO of Pandion Energy, Jan Christian Ellefsen, commented:

“With this farm-in we commit to our fourth exploration well in less than a year, demonstrating the importance of exploration and appraisal activities in Pandion Energy’s growth strategy. Once again we have identified and secured an attractive exploration opportunity close to existing fields and discoveries in the Norwegian Sea. Together with the upcoming wells in PL 842 (Godalen) and PL 263 D & E (Appolonia), we now have a portfolio of three exploration wells in this prolific part of the Norwegian continental shelf.”

PL 891 was awarded in the 2016 APA round and is operated by ConocoPhillips (100% before farm-down).

The transaction is subject to customary conditions for completion, including approval by the Norwegian Ministry of Petroleum and Energy.

The Ministry of Petroleum and Energy has approved the plan for development and operation (PDO) for the Duva development (PL 636) on Tuesday 25 June. 

The Duva field will be developed with a four-slot subsea template, tied back to the Gjøa platform for processing and export. The field will have three production wells, two oil producers and one gas producer, with the potential for an additional oil well.

First production from the project is expected in early 2021 with around 30,000 bbls of oil equivalents per day at maximum production.

The Duva field is located 6 kilometres northeast of the Gjøa field (12 kilometres from the Gjøa platform). The discovery was made in production license 636 in August 2016.

Pandion Energy holds a 20% interest in PL 636. Other licensees in the Duva project include Neptune Energy Norge (30% operator), Idemitsu Petroleum Norge (30%) and Wellesley Petroleum (20%).

Further details available from the Ministry’s website (Norwegian only).