Aker BP’s Mugnetind well does not live up to pre-drill expectations
Norwegian oil and gas company Aker BP has found a minor oil discovery on its Mugnetind exploration well, located in the Southern North Sea, offshore Norway. However, the findings are below pre-drill expectations.
The update was shared by Longboat Energy, an emerging full-cycle North Sea E&P company established by the former management team of Faroe Petroleum. The Mugnetind exploration well in licence PL906 was drilled using a Maersk Drilling-owned Maersk Integrator jack-up rig.
Aker BP was granted a drilling permit for two wells – 7/11-14 S and A – in September 2021. The drilling programme for these two wells relates to the drilling of a wildcat well and an appraisal well in production licence 906. The company started drilling operations on Mugnetind exploration well earlier this month.
Aker BP is the operator of the licence with an ownership interest of 60 per cent and other licensees are Longboat Energy Norge with 20 per cent and DNO Norge with the remaining 20 per cent interest.
Longboat reported that the exploration well 7/11-14 S had encountered hydrocarbons in the Upper Jurassic Ula Formation, which was reached at a vertical depth of 3,985 metres below sea level and consisted of a 28-metre gross section with 14 metres of net sandstone of moderate to good quality.
The statement adds that the reservoir section in Mugnetind is thinner than predicted as a thick coal layer was encountered immediately under the reservoir. The exploration well was drilled on a seismic anomaly, which predrill had been identified as either hydrocarbon filled reservoir or coal.
Based on Aker BP’s preliminary estimates, the Mugnetind discovery contains recoverable resources between 5 and 11 MMboe, which is not considered to be commercial in isolation.
Helge Hammer, Chief Executive of Longboat, commented: “While we are disappointed that Mugnetind has come in below pre-drill expectations, we will continue to review opportunities in the area and the potential for finding a commercial development solution. Nevertheless, having discovered hydrocarbons in all of our first three wells is a fantastic achievement by our technical team.”
The well was drilled ahead of time and below budget and will now be plugged and abandoned as planned.
“Following our material discovery at Egyptian Vulture earlier this week, the company is looking forward to the continuing fully funded well programme with Ginny/Hermine expected later in 2021 and the Kveikje and Cambozola wells spudding in the spring of 2022,” added Hammer.