Denmark: DONG Energy Invests in Further Development of South Arne field

DONG Energy has decided – together with the operator Hess and the licence partners – to develop the Danish North Sea field South Arne. DONG Energy’s share of the investment amounts to about DKK 2.5 billion (USD 445 Million).

The development’s expected commercial reserves is about 15 million barrels of oil equivalent (boe) in DONG Energy’s share and is made up of both oil and natural gas.

”The further development of the South Arne field contributes to extend the time period for Danish self supply of oil and gas. At the same time we utilize the investments, which have already been made in the existing South  Arne platform and the gas pipeline going in to shore”, says Søren Gath Hansen, Executive Vice President of DONG Energy.

The development includes 11 new wells and two new platforms, one unmanned platform 2½ km north of the existing South Arne platform and another platform immediately adjoining the existing platform.

First oil and gas from the new wells is expected at the turn of the year 2012/2013. DONG Energy has an app. 34.4 per cent interest in the South Arne field, and the operator Hess a an app. 57.5 per cent interest. The two other

licence partners are Noreco (app. 6.5 per cent) and Danoil (app. 1.5 per cent).

The information provided in this announcement does not change the previous financial guidance for the 2010 financial year or the announced expected investment level.

[mappress]

Source:Dong energy , November 25, 2010;