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PL 891 is located in the Norwegian Sea approximately 20 km northeast of the Heidrun field and 270 km north of Kristiansund. The licence was awarded in the 2016 APA (Awards in Predefined Areas) Licensing Round. Pandion Energy acquired its 20 per cent interest in the license in July 2019 from operator ConocoPhillips, which holds the remaining 80 per cent. The Slagugle oil discovery was proven in December 2020, and the first appraisal campaign was conducted in spring 2022 [link].

The appraisal well encountered several oil columns in a 188-metre interval in the Åre Formation and Grey Beds, 75 metres of which consist of sandstone with very good reservoir properties.

Extensive data collection and sampling was carried out and a successful formation test completed. The maximum production rate was 650 Sm³ of oil per flow day through a 36/64-inch nozzle opening.

Preliminary assessments indicate that the discovery is within the pre-drill resource estimates, in the range of 4,9 and 9,8 million standard cubic metres (Sm³) of recoverable oil equivalent, in the main reservoir target, Middle Grey Beds, which corresponds to around 30.8 – 61.6 million barrels of oil equivalent. Additional volumes in the Lower Åre and Upper Grey Beds, not part of the production test scope, represent a resource upside. Collected data will be further analysed as the licensees continue to mature Slagugle towards a future development decision.

For further information see press release from the Norwegian Offshore Directorate: https://www.sodir.no/en/whats-new/news/exploration-drilling-results/2025/appraisal-well-confirms-oil-discovery-in-the-norwegian-sea-65075-12-s/

Jan Christian Ellefsen, CEO of Pandion Energy, stated the following:

2024 marked eight years into our history, and we focused on refining and maturing the assets in our portfolio to unlock their full potential. It has been a year of stable operations, disciplined financial performance, and significant milestones achieved across our projects, positioning us for exciting opportunities ahead.

In 2024, the company reported another year of solid financial performance, with total revenues and income of USD 223.5 million and an operating profit of USD 91.7 million. Pandion Energy remained committed to challenging and supporting the operators’ HSE programs, attaining positive safety and environmental results throughout the year. Total production was close to 8,000 boepd and exceeded expectations.

The Valhall & Hod fields concluded the year with high production efficiency, driven by strong uptime and enhanced well maintenance. This positive trend has continued into 2025. The Valhall PWP project is on track, with fabrication and construction activities advancing at multiple sites. The Ofelia discoveries are maturing towards a development decision, a Concretisation decision (BOK) was reached and submitted to the authorities in December with PDO planned for submission by the end of 2025. At the Nova field, a new water injector well was spudded at the end of the year and successfully delivered in February 2025, with the goal of further improving field performance. Furthermore, the Mistral discovery well, spudded in December 2024 and announced in March 2025, indicated recoverable resources of 19 to 44 mmboe. This well marks the seventh discovery for Pandion Energy out of a total of ten exploration wells drilled since the company’s inception in 2016.

With an ambitious program ahead, Pandion Energy enters 2025 with confidence, determination, and a clear vision for continued growth.

Annual Report 2024

The production license was awarded by the Norwegian Ministry of Energy in 2021, as part of the Awards in Pre-defined Areas (APA) 2020. The 35/6-6 well was located in the northern part of the North Sea, 20 kilometres Northwest of the Gjøa field.

Partners in PL 1109 Horatio: OMV (Norge) AS (30%, operator), Pandion Energy AS (20%), Aker BP ASA (20%), DNO Norge AS (20%*), OKEA ASA (10%*)

* Transaction pending approval by the Department of Energy

For additional details, please refer to the Norwegian Offshore Directorate’s official website (https://www.sodir.no/en/whats-new/news/exploration-drilling-results/2025/dry-well-in-the-north-sea-366-6/)

The Mistral well encountered a 46-metre gas/condensate column in a sandstone reservoir with good reservoir properties. As part of the drilling operations, an extensive data collection programme was carried out, which will be used to conduct further studies of the reservoir and fluid properties.

7 discoveries out of 9 wells

This well marks the seventh discovery for Pandion Energy out of a total of nine exploration wells drilled since the company’s inception in 2016. The Mistral discovery is located in the neighbouring license to the Tyrihans subsea field in the Norwegian Sea, and close to several other producing fields, including Åsgard and Kristin.

VP Exploration & Appraisal, Bente Flakstad Vold states:

This discovery strengthens our presence in this mature part of the Norwegian Sea and illustrates our approach to exploration in selected areas near existing infrastructure. I am very proud of the team at Pandion Energy, which has delivered a discovery rate of around 80 percent so far. We now look forward to maturing the Mistral discovery further together with the operator Equinor and partners OKEA and DNO.

High activity in 2025

Mistral is one of two exploration wells for Pandion Energy in 2025. The Horatio well in production license 1109, where the company holds a 20 percent interest, was spudded in early February.

Pandion Energy is also actively working on maturing its other discoveries. These days the company is preparing for the appraisal campaign on the Slagugle discovery in production license 891 in the Halten Bank area in the Norwegian Sea. The company is also actively involved in maturing the Ofelia discoveries made in 2022 and 2023 in production license 929 in the Greater Gjøa area in the northern North Sea. This project passed the decision to concretize in December 2024 and together with operator Vår Energi and the other partners, the company is planning to submit a Plan for Development and Operation by the end of the year.

Additionally, the jacket for the new central production and wellhead platform (PWP) will be installed on the Valhall field during the third quarter. PWP is part of a joint development project with Fenris (formerly King Lear), located in the southern part of the North Sea. Pandion Energy AS is a partner in the Valhall license, where Aker BP is the operator.

The official announcement was made on Tuesday, 14 January, by the Ministry of Energy.

The awarded licenses include:

• PL 006 G in the Southern North Sea, additional acreage to the Valhall and Hod fields where Pandion Energy holds a 10 percent interest.
• PL1151 B, located in the Greater Gjøa area in the North Sea where Pandion Energy holds several licenses including the Nova field and the Ofelia discovery. Pandion Energy has been offered a 20 percent interest in PL 1151 B.
• PL 263 H, additional acreage to the Sierra & Solberg discoveries in the Norwegian Sea, where Pandion Energy holds a 49 percent interest.

For additional details on the APA 2024 Licensing Round, please refer to the Norwegian Offshore Directorate’s website.

The Improved Recovery Award is awarded by the Norwegian Offshore Directorate to production licenses, companies, projects or individuals for their commitment to improved recovery.

The Improved Recovery Award, formerly known as the Improved Oil Recovery (IOR) Award, is a recognition of creativity, persistence and appetite for risk when it comes to applying methods and technology that can improve oil and gas recovery beyond what is expected under existing plans and methods.

“Congratulations, Team Valhall and Hod – this award is for you!” exclaimed Ole Johan Molvig, Senior Vice President for the Valhall area at Aker BP. On behalf of Aker BP together with partner Pandion Energy, he accepted the Norwegian Offshore Directorate’s “Improved Recovery Award” at the ONS conference on Tuesday 27 August.

The Valhall and Hod fields, located in the southern part of the North Sea, have produced nearly four times more oil and gas than originally estimated in their development plans. The Norwegian Offshore Directorate’s justification for the award highlighted that Aker BP’s takeover of the operatorship in 2016 marked a change of pace in the further development of these fields. Since becoming a licensee in 2017, Pandion has also played an active role as a partner.

“Since becoming a partner in the Valhall and Hod license in 2017, we have actively participated in two flank developments. Now, with the PWP project underway, we have embarked on our third development in the area with AkerBP. The collaboration within the partnership has been strong, fostering a culture where we can challenge and complement each other in advancing the Valhall and Hod area further, including testing of new technologies. This approach has paved the way for innovation, creativity, and not least willingness to invest. The results are evident, with production now expected to extend well into the 2050s”, says CEO of Pandion Energy, Jan Christian Ellefsen in a comment.

The Valhall field was discovered in 1975, with production starting in 1982 under Amoco’s operatorship. The nearby Hod field started production in 1990. Since then, more than one billion barrels of oil equivalent have been produced from the area. The ambition is to produce an additional one billion barrels over the next 40 years.

In the justification for the award, it is emphasised that “This year’s award winner has ambitious plans to implement newly developed technology to increase production from tight reservoir formations. With the PH platform and flanks, power from shore was established in 2013 – significantly reducing emissions.”

“The licensees have shown willingness to take risks and to pursue long-term planning to achieve energy-efficient development of these fields. They are accomplishing this by using digital technologies and by cooperating with technology companies and research institutions,” says Torgeir Stordal, Director general of the Norwegian Offshore Directorate.

The Improved Recovery Award was first awarded in 1998. Since 2012, the prize has been awarded during the Offshore Northern Seas (ONS) conference.

 

About the award and previous winners:

Improved recovery award for creativity, perseverance and appetite for risk (sodir.no)

The Improved Recovery Award – The Norwegian Offshore Directorate (sodir.no)

 

Read more:

Aker BP: Valhall wins the Norwegian Offshore Directorate’s award for improved recovery

 

Jan Christian Ellefsen, CEO of Pandion Energy, stated the following:

As we reflect on the journey of Pandion Energy through 2023, the year stands out as a year with focus on unlocking the inherent value of our portfolio and ensuring safe and efficient operations and production.

“The Valhall, Hod and Nova fields have not only met, but surpassed our production targets for the year. On Nova, we successfully completed a side-track drilling operation to improve the location of one of the water injector wells. At Valhall, we conducted an effective well intervention campaign leading to an impressive production performance.  This performance was achieved despite operational challenges, which included a temporary shutdown at the Valhall and Hod fields. This accomplishment is a testament to our resilience and operational excellence.”

Pandion Energy has over the years built a highly competent team, with extensive subsurface expertise and field development capabilities. Over the company’s seven years, Pandion Energy has made six discoveries out of seven drilling campaigns, representing a success rate exceeding 85 per cent. The company’s core focus remains in the mature areas close to existing infrastructure in the greater Valhall and Gjøa areas of the North Sea, and the Haltenbanken area of the Norwegian Sea.

“Our financial trajectory in 2023 has been nothing short of impressive, with a record-breaking turnover of USD 223.4 million and robust EBITDAX margin. Our cost efficiency has been maintained at USD 10 per barrel produced and our carbon footprint for 2023 was 1.5 kilograms of CO₂e per barrel of oil equivalent. This is a carbon intensity per barrel amongst the lowest in the global E&P industry, as well as Norway. I wish to extend a heartfelt thank you to our motivated team and partners. Their strong commitment is the foundation of our success,” Ellefsen continues.

Average net production for Pandion Energy was 8,304 barrels of oil equivalent per day (boepd), an increase of 46 per cent from the average of 5,697 boepd in 2022.

With its strong financial position, Pandion Energy is well positioned for future operations on the Norwegian continental shelf. The company remains committed to its strategy of being an active and responsible partner, and a full-cycle oil and gas company with long-term ambitions.

Pandion Energy combined annual report 2023

BNP Paribas, a lender in Pandion Energy`s reserve based lending (“RBL”) facility announced in 2023 an energy transition strategy which included an exit path from oil production financing. BNP Paribas has now transferred their shares in Pandion Energy`s RBL facility to Deutsche Bank, an incumbent lender, while also bringing aboard a new lender, SpareBank 1 SR-Bank.

The official announcement was made on Tuesday, 16 January, by the Ministry of Energy.

For additional details on the APA 2023 Licensing Round, please refer to the Ministry of Energy’s official website (https://www.npd.no/en/facts/production-licences/licensing-rounds/apa-2022/).

For more information about Pandion Energy please visit: www.pandionenergy.no

 

The Ofelia appraisal well, 35/6-4 S, in the Agat formation has been completed. The estimated recoverable volume is in the range of 16-33 million barrels of oil equivalent (mmboe).

In addition to the appraisal well for Ofelia, a side-track was drilled into the overlying Kyrre formation, resulting in a new gas discovery. Estimated recoverable resources are between 11-19 mmboe of gas, bringing the total recoverable volume from both discoveries to approximately 27-52 mmboe.

CEO of Pandion Energy, Jan Christian Ellefsen, said:

“Located in a core area for Pandion Energy, the size and quality of the Ofelia and Kyrre discoveries are highly encouraging. Given the proximity to Gjøa and the operator’s development track record, we are confident this will turn into another fast track, cost-effective and low carbon development.”

Ofelia and Kyrre are located 23 kilometres north of the Neptune-operated Gjøa platform and will be considered for development as tie-backs to Gjøa. The Gjøa platform is electrified with power from shore and produces at less than half the average carbon intensity of Norwegian Continental Shelf fields.¹

Bente Flakstad Vold, VP Exploration & Appraisal in Pandion Energy, added:

“The successful Ofelia appraisal and the new gas discovery are the result of a focused exploration effort in the Greater Gjøa Area since we took part in the discovery of Duva in 2016.

We now look forward to applying the learnings from this well on our extensive exploration portfolio in the surrounding area. The appraisal well proved very good reservoir properties in an additional fairway in the Agat Formation, boosting our expectations of the Agat reservoir in the Horatio wildcat well to be drilled in PL 1109.”

 

Partners: Neptune Energy (operator, 40%), Wintershall Dea (20%), Pandion Energy (20%), Aker BP (10%), and DNO (10%)

For further information see press release from the operator Neptune Energy (Neptune Energy announces Kyrre discovery & confirmed Ofelia volumes in Gjøa area | Neptune Energy).

 

Notes to editors:

1) CO₂ emissions from Gjøa are estimated at 3kg of CO₂ per boe (EnvironmentHub (EEH); CO₂ emissions and Diskos; Gross production incl. tie-ins, 2020), average on the Norwegian Continental Shelf is 8 kg CO₂/barrel (NOROG Miljørapport 2020).